Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:
|Month||Machine Hours||Electricity Costs|
|Coefficients||Standard Error||t Stat||P-value||Lower 95%||Upper 95%|
If the controller uses regression analysis to estimate costs, the cost equation for electricity cost is:
Cost = $4,492.22 + $2,479.75 × Machine-hours.
Cost = $2,479.75 + $0.55 × Machine-hours.
Cost = $4,492.22 + $4.35 × Machine-hours.
Cost = $2,039.35 + $12.00 × Machine-hours.
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