A company has observed that there is a linear relationship between indirect labo

Question

A company has observed that there is a linear relationship between indirect labor expense (ILE) , in dollars, and direct labor hours (DLH). Data for direct labor hours and indirect labor expense for 18 months are given in the file ILE_and_DLH.xlsx

591.5

Treating ILE as the response variable, use regression to fit a straight line to all 18 data points.

Approximately what percentage of the variation in indirect labor expenses is explained by the regression model you derived?

Place your answer, rounded to 1 decimal place, in the blank. Do not use any stray punctuation marks or a percentage sign. For example, 78.9 would be a legitimate entry.

DLH(X) ILE(Y) 20 361 25 400 22 376 23 384 20 361 19 360 24 427.2 28 458.4 26 450.8 29 475.2 27 462.6 25 445 28 511 32 550.8 35 587.8 34 574.1 30 535.4 36

591.5

Treating ILE as the response variable, use regression to fit a straight line to all 18 data points.

Approximately what percentage of the variation in indirect labor expenses is explained by the regression model you derived?

Place your answer, rounded to 1 decimal place, in the blank. Do not use any stray punctuation marks or a percentage sign. For example, 78.9 would be a legitimate entry.

Explanation / Answer

sing the "RegressIon" feature of Excel, the linear regression equation is ...

Y = 52.1819582 +(15.2640264)(X)

r = 0.977706689

R

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