3.

29
Limousine Number
1
2
3
4
5
6
7
8
9
10

Costs
Kilometres
3,500.00
12,400.00
3,400.00
11,800.00
3,200.00
10,600.00
3,800.00
11,500.00
3,500.00
11,800.00
4,000.00
13,200.00
3,200.00
9,800.00
3,000.00
9,200.00
4,200.00
11,700.00
3,900.00
12,300.00

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.7547525
R Square
0.5696513
Adjusted R Square
0.5158577
Standard Error
272.55998
Observations
10
ANOVA
df
Regression
Residual
Total

1
8
9
Coefficients
810.91771
0.2413895

Intercept
X Variable 1

SS
MS
F
Significance F
786688.4675 786688.5 10.58958 0.0116284
594311.5325 74288.94
1381000
Standard Error
t Stat
P-value Lower 95% Upper 95%
852.2320386 0.951522 0.369198 -1154.3329 2776.16831
0.074178683 3.254163 0.011628 0.0703332 0.41244588

According to the regression equation, the estimated variable cost is about 0.2414 per kilometer and the estimated fixed c
around 810.92 per limousine. The high-low and regression results are quite similar in this case. (See exercise 3.28 for the
results.)
Estimated total costs = 0.241 x 12,000 + 810.92 = 3,707.72 *
*Answers may differ due to rounding
RESIDUAL OUTPUT
Observation
1
2
3
4
5
6
7
8
9
10

Predicted Y
3804.1478
3659.3141
3369.6467
3586.8973
3659.3141
3997.2595
3176.5351
3031.7014
3635.1752
3780.0089

Residuals
-304.1478409
-259.3141249
-169.6466928
213.1027331
-159.3141249
2.740537738
23.46492852
-31.70135546
564.8248278
119.9911118

X Variable 1 Residual Plot

Residuals

1000
500
0
-500

2,000.004,000.006,000.008,000.00
10,000.00
12,000.00
14,000.00
X Variable 1

X Variable 1 Line Fit

4,500.00
4,000.00
3,500.00

Lower 95.0% Upper 95.0%

-1154.3329
2776.168315
0.070333178
0.412445876

meter and the estimated fixed costs is

case. (See exercise 3.28 for the high-low

3,000.00

2,500.00
2,000.00
1,500.00
1,000.00
500.00
-

2,000.004,000.006,000.008,000.00
X Variable 1

riable 1 Line Fit Plot

Y
Predicted Y

6,000.008,000.00
10,000.00
12,000.00
14,000.00
X Variable 1