Burmer Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined.
Burmer Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows: Month Jan. Feb. Mar. Apr. May June July Aug Sept. Oct. Nov. Dec. Sum Average Maintenance Machine Cost Hours $ 5,040 620 3,600 420 4,320 520 3,380 390 5,220 650 3,552 4ee 3,640 5,360 680 5,110 640 4,860 610 3,960 3,790 440 $ 51,830 6,260 $ 4,319 522 430 460 A staff assistant has run regression analyses on the data and obtained the following output using Excel REGRESSION ANALYSIS Y (Dependent) Variable: Maintenance Cost X (Independent) Variable: Maintenance Hours Regression Statistics Multiple R 0.998210294 R Square 0.996423791 Adjusted R Square 0.99606617 Standard Error 47.0629563 Observations ANOVA Significance F 1.44166E-13 Regression Residual Total 10 6171342.448 6171342 2786.257 22149.21856 2214.922 6193491.667 Standard Errort Stat P-value 68.34114772 11.46861 4.47E-07 0.12839866 52.78501 1.44E-13 Intercept Hours Coefficients 783.7782188 6.777182456 Lower 95% Upper 95% 631.584653 936.051785 6.491e3e239 7.86317467 The p-value is a measure of: Multiple Choice О The precision of the regression. о The reliability of the independent variable. о The accuracy of the regression predictions. The linearity in the data.
