# Selecting the two best regressions from part (c) conduct a multiple regression of overhead against these two independent variables. Evaluate the regression results. If there should be a problem identify the problem and draw conclusions about the best of t

01 / 10 / 2021 Assignment

This paper circulates around the core theme of Selecting the two best regressions from part (c) conduct a multiple regression of overhead against these two independent variables. Evaluate the regression results. If there should be a problem identify the problem and draw conclusions about the best of t together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

The CEO of Milton Manufacturing Company has asked you to develop a cost equation to predict monthly overhead costs in its production department. You have collected the following data for the last 10 months: Overhead costs (OH\$) and the proposed independent variables: Number of machine hours worked (MH), number of direct labour hours (DLH) and number of indirect labour workers (IL Workers).

OH (\$) MH DLH IL Workers
2,000 9,500 1,800 3
4,500 20,000 4,200 8
3,000 14,000 2,500 15
2,700 13,000 2,400 10
6,000 28,000 5,000 16
5,100 25,000 4,800 12
8,000 42,000 8,100 6
4,800 25,000 4,500 8
7,500 35,000 6,900 14
6,500 32,000 6,000 11

(a) The CEO suggests that he has heard that the high-low method of estimating costs works
fairly well and should be inexpensive to use. Write a response to this suggestion for the CEO indicating the advantages and disadvantages, including the calculation of a cost equation for this data using MH as the cost driver. (5 marks)

(b) Using Excel develop three scatter diagrams showing overhead costs against each of the proposed independent variables. Comment on whether these scatter diagrams indicate that linearity is a reasonable assumption for each. (5 marks)

(c) Using the regression module of Excel’s Add-in Data Analysis, perform 3 simple regressions by regressing overhead costs against each of the proposed independent variables. Evaluate each of the regression results, indicating which is best and why. Provide the cost equations for those regression results which are satisfactory and from them calculate the predicted overhead in a month where there were 10,000 MH and 3,000 DLH worked. (5 marks)

(d) Selecting the two best regressions from part (c) conduct a multiple regression of overhead against these two independent variables. Evaluate the regression results. If there should be a problem identify the problem and draw conclusions about the best of the four regression results to use. (5 marks)

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

## Benefits You Get

• Free Turnitin Report
• Unlimited Revisions
• Installment Plan
• Plagiarism Free Guarantee
• 100% Confidentiality
• 100% Satisfaction Guarantee
• 100% Money-Back Guarantee
• On-Time Delivery Guarantee

+44 7340 9595 39
+44 20 3239 6980
[email protected]
AKOSZTEC “International House, 12 Constance Street, London, United Kingdom, E16 2DQ”

Hire Researcher
Rated 4.7/5 based on 8956 Reviews

## Supporting Pages

FLAT 25% OFF ON EVERY ORDER. Use "FLAT25" as your promo code during checkout