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    Alex Velez
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    The summary analyzes the relationship between Intel Company's total operating expenses and two independent variables: Selling & Administrative (S&A) expenses and Research & Development (R&D) expenses from 2005 to 2014. There is a positive linear relationship between total operating expenses and both S&A expenses and R&D expenses. The model with S&A expenses as the independent variable has an R-squared value of 0.72 and the model with R&D expenses has an R-squared value of 0.68, indicating both models fit the data well. Both relationships are considered economically plausible.

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    The summary analyzes the relationship between Intel Company's total operating expenses and two independent variables: Selling & Administrative (S&A) expenses and Research & Development (R&D) expenses from 2005 to 2014. There is a positive linear relationship between total operating expenses and both S&A expenses and R&D expenses. The model with S&A expenses as the independent variable has an R-squared value of 0.72 and the model with R&D expenses has an R-squared value of 0.68, indicating both models fit the data well. Both relationships are considered economically plausible.

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    2 views8 pages

    Cost

    Uploaded by

    Alex Velez
    The summary analyzes the relationship between Intel Company's total operating expenses and two independent variables: Selling & Administrative (S&A) expenses and Research & Development (R&D) expenses from 2005 to 2014. There is a positive linear relationship between total operating expenses and both S&A expenses and R&D expenses. The model with S&A expenses as the independent variable has an R-squared value of 0.72 and the model with R&D expenses has an R-squared value of 0.68, indicating both models fit the data well. Both relationships are considered economically plausible.

    Copyright:

    © All Rights Reserved
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    of 8

    SUMMARY OUTPUT

    Regression Statistics
    Multiple R
    0.8512914638
    R Square
    0.7246971564
    Adjusted R Square
    0.6902843009
    Standard Error
    2.3193835547
    Observations
    10
    ANOVA
    df
    Regression
    Residual
    Total

    Intercept
    Selling & Admin

    1
    8
    9

    SS
    MS
    F
    113.2872394083 113.2872 21.05891
    43.0363205917 5.37954
    156.32356

    Coefficients
    -1.2509750237
    2.9864867844

    Standard Error
    t Stat
    P-value
    4.5396987069 -0.275563 0.789867
    0.6507927015 4.588999 0.001781

    Y=-1.251 + 2.986X
    RESIDUAL OUTPUT
    Observation
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10

    Predicted Y
    15.7421347794
    16.966594361
    14.876053612
    15.055242819
    22.4318651765
    17.5937565858
    21.6553786125
    22.8201084584
    22.909703062
    23.0291625333

    Residuals
    -0.8421347794
    -0.376594361
    0.633946388
    0.854757181
    -3.5618651765
    -0.5337565858
    0.3346213875
    2.8098915416
    3.490296938
    -2.8091625333

    Significance F
    0.0017809

    Lower 95% Upper 95%Lower 95.0%


    Upper 95.0%
    -11.719539 9.21758897 -11.71954 9.217589
    1.48575612 4.48721745 1.485756 4.487217

    SUMMARY OUTPUT
    Regression Statistics
    Multiple R
    0.8297093308
    R Square
    0.6884175736
    Adjusted R Square
    0.6494697704
    Standard Error
    2.4674803475
    Observations
    10
    ANOVA
    df
    Regression
    Residual
    Total

    SS
    MS
    1 107.6158858792 107.6159
    8 48.7076741208 6.088459
    9
    156.32356

    Coefficients
    8.4972473737
    1.4343575197

    Intercept
    Research & Devolp.

    Standard Error
    t Stat
    P-value
    2.6871916008 3.162129 0.01335205
    0.341171641 4.204211 0.00297933

    Y=8.497 + 1.434X
    RESIDUAL OUTPUT
    Observation
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10

    Predicted Y
    15.8841886004
    16.9169260146
    16.7591466874
    16.7017723866
    16.6013673603
    17.9353198536
    20.4741326635
    23.0559761991
    23.701437083
    25.0497331515

    F
    17.675389

    Residuals
    -0.9841886004
    -0.3269260146
    -1.2491466874
    -0.7917723866
    2.2686326397
    -0.8753198536
    1.5158673365
    2.5740238009
    2.698562917
    -4.8297331515

    Significance F
    0.002979327

    Lower 95% Upper 95%Lower 95.0%


    Upper 95.0%
    2.30057243 14.6939223 2.300572 14.69392
    0.647614305 2.22110073 0.647614 2.221101

    Intel Company

    Selling
    &
    Year
    Admin
    2005 $
    2006 $
    2007 $
    2008 $
    2009 $
    2010 $
    2011 $
    2012 $
    2013 $
    2014 $

    5.69
    6.10
    5.40
    5.46
    7.93
    6.31
    7.67
    8.06
    8.09
    8.13

    Research
    &
    Develop
    $
    5.15
    $
    5.87
    $
    5.76
    $
    5.72
    $
    5.65
    $
    6.58
    $
    8.35
    $
    10.15
    $
    10.60
    $
    11.54

    Total
    Operating
    expenses
    $
    14.90
    $
    16.59
    $
    15.51
    $
    15.91
    $
    18.87
    $
    17.06
    $
    21.99
    $
    25.63
    $
    26.40
    $
    20.22

    $
    Total operating exp.

    (Numbers in billions)
    $30.00
    $25.00
    $20.00
    $15.00
    TOTAL
    OPERATING EXP.
    $10.00
    $5.00
    $$4.00

    $5.00

    $6

    $30.00
    $25.00
    $20.00
    Total operating exp.

    $15.00
    $10.00
    $5.00
    $$5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 $8.50
    S&a eXPENSE

    $30.00
    $25.00
    $20.00

    $15.00
    TAL
    OPERATING EXP.
    $10.00
    $5.00
    $$4.00

    $5.00

    $6.00

    $7.00

    $8.00

    R&D EXPENSE

    $9.00

    $10.00 $11.00 $12.00

    Report:
    Economic Plausability

    S&A Exp. as an independent var.


    A positive relationship between
    total operating expense and
    S&A exp. Is economically
    plausible.
    r^2=0.72; standard error of
    regression = $2.32

    R&D Exp. as an indepe


    A positive relationship bet
    total operating expense a
    R&D exp. Is economically
    plausible.
    r^2=0.68; standard error
    regression = $2.47

    Significance of
    independent variable

    The t-value of 4.59

    The t-value of 3.16

    Specification analysis of
    estimation assumptions

    Plot of the data indicates that


    that the assumptions are linear.

    Plot of the data indicates


    that the assumptions are

    Goodness of fit

    &D Exp. as an independent var.


    positive relationship between
    otal operating expense and
    &D exp. Is economically

    ^2=0.68; standard error of


    egression = $2.47

    he t-value of 3.16

    lot of the data indicates that


    hat the assumptions are linear.

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