
Assume that the following relationship holds:
Maintenance Costs = (v * Machine Hours) + f
REQUIRED
Estimate the values of v and f and the cost equation, using,
1. the HighLow Method, and
2. the Linear Regression method.
Note, to use the linear regression method, you MUST use the Microsoft Excel program.
Make sure to report
1. The values of v and f;
2. A scatter plot of the data points, and
3. The adjusted Rsquare; explain what the adjusted Rsquare means.
4. The cost equation in the form of Y = vx + f, substituting the values for v and f from the regression output.
YOUR SUBMISSION MUST BE IN EXCEL. ONE WORKBOOK, WITH A WORKSHEET FOR EACH ANALYSIS (i.e., HighLow Method and Regression Analysis respectively).
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