Question

In: Accounting

The following information on maintenance and repair costs and revenues for the last two years is...

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 $1.66 $46.00
August 2.63 40.00
September 2.15 36.00
October 1.56 52.00
November 1.65 64.00
December 0.49 92.00
January 2.47 32.00
February 2.51 38.00
March 2.37 48.00
April 2.33 50.00
May 1.39 54.00
June 1.13 66.00
July 1.95 60.00
August 1.37 54.00
September 1.92 62.00
October 1.73 64.00
November 0.78 74.00
December 0.11 104.00
January 1.93 48.00
February 1.63 50.00
March 1.04 70.00
April 1.30 74.00
May 1.30 60.00
June 1.72 56.00

Required:

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
R Square
Standard Error
Observations
Coefficients
Intercept
Revenues

Solutions

Expert Solution

Let X be the revenue and Y be the maintenance and repair cost. Commands to perform regression analysis in excel

  1. Enter data into excel sheet
  2. Goto Data>> Data Analysis >> Regression
  3. For Input Y value select column for maintence and rapair cost
  4. For Input X values select column for revenue.
  5. Select empty cell for output range

The Excel regression output is:

ekkarill92 answered 2 years ago
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