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
Treating ILE as the response variable, use regression to fit a straight line to all 18 data points. What values for the intercept (a) and slope (b) do you obtain?
Place your answers, rounded to 3 decimal places, in the blanks provided. Do not use any stray punctuation marks. For example, 34.567 would be a legitimate entry.
intercept (a) =
The solution gives detailed steps on determining slope and intercept on the regression line using excel.