Discussion:
Q: 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) =
slope(b) =
| DLH(X) |
ILE(Y) |
| 20 |
361 |
| 25 |
400 |
| 22 |
376 |
| 23 |
384 |
| 20 |
361 |
| 19 |
360 |
| 24 |
427.2 |
| 28 |
458.4 |
| 26 |
450.8 |
| 29 |
475.2 |
| 27 |
462.6 |
| 25 |
445 |
| 28 |
511 |
| 32 |
550.8 |
| 35 |
587.8 |
| 34 |
574.1 |
| 30 |
535.4 |
| 36 |
591.5 |