Question

The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.

Month	Maintenance and Repair Cost ($000)	Revenues ($000)
July	$2.31	$59.00
August	3.28	53.00
September	2.80	49.00
October	2.21	65.00
November	2.30	77.00
December	1.14	105.00
January	3.12	45.00
February	3.16	51.00
March	3.02	61.00
April	2.98	63.00
May	2.04	67.00
June	1.78	79.00
July	2.60	73.00
August	2.02	67.00
September	2.57	75.00
October	2.38	77.00
November	1.43	87.00
December	0.76	117.00
January	2.58	61.00
February	2.28	63.00
March	1.69	83.00
April	1.95	87.00
May	1.95	73.00
June	1.33	69.00

Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)

Regression Statistics

Multiple R: 0.8436280

R Square: 0.7117080

Standard Error:

Observations: 24

Coefficients

Intercept:

Revenues:

Answer 1

Hello Sir/ Mam

Your required regression analysis :

Regression Statistics
Multiple R	0.8436276
R Square	0.7117075
Standard Error	0.3658095
Observations	24
	Coefficients
Intercept	4.6107
Revenue	-0.0334

Original Excel Output :

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.843627611
R Square	0.711707546
Adjusted R Square	0.698603343
Standard Error	0.365809542
Observations	24
ANOVA
	df	SS	MS	F	Significance F
Regression	1	7.26776767	7.26776767	54.31139729	2.24256E-07
Residual	22	2.943965663	0.133816621
Total	23	10.21173333
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	4.610680905	0.330675992	13.94319824	2.11634E-12	3.924900872	5.296460939	3.924900872	5.296460939
X Variable 1	-0.033397621	0.004531793	-7.369626673	2.24256E-07	-0.042795984	-0.023999258	-0.042795984	-0.023999258

I hope this solves your doubt.

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