# Using Regression Equation

MONTH NUMBER OF MOVES NUMBER OF LBS. MATERIAL HANDLING COST

January $100 6,000 $2,000

February $125 15,000 $3,090

March $175 7,800 $2,780

April $200 600 $1,990

May $500 29,000 $7,500

June $300 23,000 $5,300

July $250 17,000 $4,300

August $400 25,000 $6,300

September $475 12,000 $5,600

October $425 22,400 $6,240

Questions:

1) What is the regression equation if 'Number of Moves" is used as the predictor?

2) How much does this equation explain about material handling costs?

3) What is the regression equation if "Number of Lbs." is used as the predictor?

4) How much does this equation explain about material handling costs?

5) What is the multiple regression equation if both predictors are used?

6) How much does this equation explain about material handling costs?

7) If you were the firm's cost accountant, which equation would you use? Explain.

#### Solution Summary

The solution discusses using the regression equation.