Question

In: Accounting

***Please show the work in Excel*** Use the following data to construct a scatter diagram. Does...

***Please show the work in Excel***

Use the following data to construct a scatter diagram. Does there appear to be a relationship between hours of overtime and number of rejects? Discuss.

Hours of Overtime                  Number of Rejects

                                    127                                          33

                                     90                                           25

                                     95                                           23

                                    160                                          40

                                     10                                           9

                                     80                                           19

                                     27                                           14

                                    103                                          28

                                     48                                           19

                                     65                                           31

Solutions

Expert Solution

       

Mx My
80.5 24.1
Hours of Overtime Number of rejects X-Mx Y-My (X-Mx)^2 (Y-My)^2 (X-Mx)(Y-My)
127 33 46.5 8.9 2162.25 79.21 413.85
90 25 9.5 0.9 90.25 0.81 8.55
95 23 14.5 -1.1 210.25 1.21 -15.95
160 40 79.5 15.9 6320.25 252.81 1264.05
10 9 -70.5 -15.1 4970.25 228.01 1064.55
80 19 -0.5 -5.1 0.25 26.01 2.55
27 14 -53.5 -10.1 2862.25 102.01 540.35
103 28 22.5 3.9 506.25 15.21 87.75
48 19 -32.5 -5.1 1056.25 26.01 165.75
65 31 -15.5 6.9 240.25 47.61 -106.95
Total 805 241 18418.5 778.9 3424.5
use excel to draw the scatter diagram
Mean x(X)
Mean y (Y)
X Values
Sum 805
N 10
Mean Sum of X/N
805/10
80.5
Y Values
Sum 241
N 10
Mean Sum of X/N
241/10
24.1
Therefore R 3424.5/sqrt 18418.5*778.9
3424.5/3787.63
0.904
Consider for 80 hrs of overtime we have 19 rejects
For 75 hrs let us assume we have x number of rejects
x 75*19/80
17.8125 18 rejects
we have 18 rejects for 75 hrs

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