Always get overwhelmed by the amount of material when covered at a comprehensive level. Attached is the study material of what to be prepared to cover at the conclusion of this course. I have worked through them but get stumped at several points. Can you provide a systematic approach to these problems and provide a reference to refer to make sure my solutions are accurate. It would helpful if you can explain why you did what you did, as this is just a helpful of study and questions may appear differently at the actual conclusion of the course.
An accountant wishes to predict direct labor cost (y) on the basis of branch size (x) of a product produced in a job shop. A sample of 14 production runs revealed the following:
Refer to Table 11A on the Handout for MegaStat output.
Analyze the above output to determine the regression equation.
What conclusions are possible using the meaning of b0 (intercept) and b1 (size) in this problem? (That is, explain the meaning of the coefficients)
What conclusions are possible using the coefficient of determination (-sqaured)?
Calculate the coefficient of correlation. Interpret this value.
Does this data provide significant evidence (alpha=0.05) that the direct labor costs are associated with the size of a batch? Find the p-value and interpret.
Predict the average direct labor cost for a batch size of 100.
What is the 95% confidence interval for the direct labor cost for a batch size of 100. What conclusion is possible using this interval?
Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.