Question

El Paso Products Company has accumulated the following data over a six-month period:

	Machine Hours	Machine-Related Costs
January	700	$                               10,000
February	900	$                               12,000
March	1100	$                               15,000
April	1300	$                               17,000
May	1500	$                               22,500
June	1700	$                               22,000
	7200	$                               98,500

Use excel least-squares regression method. Give the formula and r factor

Answer 1

Coefficient of Correlation is the R value	0.97562267
SUMMARY OUTPUT
Regression Statistics
Multiple R	0.97562267
R Square	0.95183959
Adjusted R Square	0.93979948
Standard Error	1256.8858
Observations	6
ANOVA
	df	SS	MS	F	Significance F
Regression	1	124889286	124889286	79.0557649	0.00088414
Residual	4	6319047.62	1579761.9
Total	5	131208333
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	388.095238	1874.32376	0.2070588	0.84607754	-4815.8618	5592.05228	-4815.8618	5592.05228
X Variable 1	13.3571429	1.50226586	8.89133088	0.00088414	9.18618416	17.5281016	9.18618416	17.5281016