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Compute the coefficient of determination

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Reference no: EM13511691

Data for total power costs and machine hours are given below.

Power Costs

Machine Hours

(000 omitted)

(000 omitted)

$ 7

9 hours

6

8

8

8

3

4

4

6

8

7

8

9

6

5

7

8

5

6

$62

70 hours

1. Separate the power costs into the fixed and variable components using the method of least squares. Estimate the power costs when 6.5 machine hours are used.

2. Compute the coefficient of determination.

3. Does the regression equation need to be improved?

Reference no: EM13511691

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