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(b) Cost behaviour: the relationship between cost and the level of activity (that is, cost
driver).
(c) Cost prediction: using knowledge of cost behaviour to forecast the level of a cost at a
particular level of activity.
Cost estimation is the process used to determine what the cost behaviour is for a particular
cost item. The cost behaviour pattern is used to make a cost prediction about the cost at a
particular level of activity.
3.2 A cost driver is an activity or factor that causes costs to be incurred. In identifying cost
behaviour, the management accountant identifies the relationship between a particular cost
and the level of its cost driver (also called level of activity when the cost driver relates to
an activity).
3.3 Volume-based cost drivers are used in conventional management accounting systems. This
assumes that variable costs vary in proportion to production volume and that fixed costs do
not change with production volume. ABC allows a range of cost driverssuch as unit level,
batch level, product level, and facility levelso that for these various types of cost there is a
more realistic link between the cost and its cost driver. The conventional approach only
examines variability with production volumethat is, at the unit level.
3.4 The hierarchy of costs is a way of grouping costs on the basis of them having similar
behaviour patterns. They have similar behaviour patterns because they have the same, or
related, cost drivers. Unit level costs have cost drivers that change with the number of units
of output (for example, units of production, number of direct labour hours, amount of direct
material used, the number of cheques a bank employee processes, the number of operations
in an operating theatre and so on). Batch level costs have cost drivers that are associated
with the number of batches and will vary roughly with the number of batches. Product -
sustaining costs do not change with the number of products but exist because an individual
product is produced. There is no reason why the product-sustaining costs for one product
should be the same as those for a different product. Hence they are probably better referred
to as product-sustaining rather than product level costs. Clearly facility-sustaining costs are
incurred to provide the capability to produce but are not caused by any individual product.
At Holden Engine Company (HEC) an analysis of costs identified these four cost drivers,
plus a fifth cost driver, which was described as administration. Thus, HECs activity-based
costing system identified five different cost behaviour patterns due to five clearly different
causes of costs. The separate recognition of administration costs will also draw attention to
what drives these costs, the value of them to the organisation, and the best ways of
managing them.
3.5 BP targeted certain costs that needed better management. We can see in the Real Life that,
in order to reduce discretionary costs, BP identified activities that did not adequately add
value to the business. Examples are the regular preparation of reports that were rarely (if
ever) used, unnecessary travel (both domestic and international), outsourcing tasks to
consultants, and maintaining excessive layers of management. These four root-cause cost
drivers were better managed to reduce costs.
3.7 As the level of activity (cost driver) decreases, total fixed cost remains constant. However,
the fixed cost per unit of activity increases as activity decreases. Examples include factory
rent, managers salaries, straight-line depreciation and property taxes.
3.8 As the level of activity (cost driver) increases, total fixed cost remains constant. However,
the fixed cost per unit of activity declines as activity increases, and the fixed cost per unit
of activity increases as activity decreases. This change in the average fixed cost per unit
may not be understood by a decision making manager who has been presented with product
costs that include unitised fixed costs.
When product costs include unitised fixed costs, managers can mistakenly treat them as
totally variable for decision making. These managers may believe that:
any short term sales that do not cover the unitised fixed costs may result in losing
money, not realising that those sales would help cover fixed costs;
a 20% reduction in production will reduce costs by 20% of the total product costs, not
realising that the fixed costs will not reduce at all (within the relevant range);
making 1000 more products will increase costs by one thousand times the product
cost, not realising that the extra cost will be less than that since total fixed costs will
not change if production is still within the relevant range.
3.9 (a) Variable cost, assuming that rubber is the only direct material used in the
manufacturing process.
(c) The number of tyres produced determines the quantity of rubber used in production
and therefore the total direct material cost. If only the quantity of rubber used is the
cost driver, it ignores any abnormal wastage incurred in the process, or the effects of
changing supply and/or demand on rubber prices. To identify the cost driver from a
cost management perspective, it is necessary to identify the underlying causes of the
direct material cost.
3.10 There are a number of ways in which the behaviour of costs may change over an extended
range of activity. Let us first consider some fixed costs. We would expect rent to change if
activity increases to the extent that extra premises are required, and depreciation would rise
in a large step if we acquired extra equipment to meet growing demand for a product. Hence
we say that fixed costs are only fixed over a particular range. With fixed costs, outside that
range we would expect there to be a large step in the cost, which would then be fixed over
another range.
If we consider variable costs, we must recognise that they are often not perfectly linear. A
simple example would be direct material. There are often discounts when large volumes of
material are purchased, and there can be transportation savings for larger orders. The
assumption of a defined linear relationship between cost and production levels will therefore
only be valid over a particular range.
Outside that range discounts may be obtained or lost and transport charges may change per
unit. In the chapter the example of curvilinear electricity costs in Tasty Bread demonstrates
that efficiencies of scale may only apply up to a particular level and then unit costs can
begin to increase again.
Within the relevant range, the firms electricity cost can be approximated reasonably closely
by a semivariable cost behaviour pattern. However, outside that range (including an activity
level of zero) the semivariable cost behaviour pattern should not be used as an
approximation of the cost.
3.12 1 Annual cost of maintaining a national highway: committed cost. (Once the highway
has been built, it must be maintained. The transportation authorities are largely
committed to spending the necessary funds to maintain the highway adequately.)
3.13 There are a number of issues to draw out in a discussion about the variability of direct
labour.
Historically direct labour was a variable cost. Now there are different employment
agreements and many workers are on a set income.
Some firms have a basic workforce that can be supplemented by hourly or daily
paid workers on an on call basis. This effectively makes direct labour a variable
cost.
Even when all workers are on contracted incomes, there is an argument that
moving workers from working on one product to another effectively makes the
direct labour cost to that product a variable cost.
3.14 The account classification method of cost estimation involves identifying costs as being of a
particular type and analysing their past behaviour to understand the expected cost in the
future. For example, a manager may identify the costs that will not change with changing
production levels (the fixed costs), and separately address the costs that change with the
levels of production (both variable costs and semi-variable costs). This way the estimation
of costs is based on expected cost behaviour, especially in relation to levels of activity such
as production volumes.
3.15 Some of the possible reasons that approximations are used in estimating cost functions
include the following:
lack of data
the resultant cost functions may be regarded as accurate enough for the firms needs.
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IRM t/a Langfield-Smith, Thorne, Smith, Hilton Management Accounting 7e
3
3.16 The chief drawback of the high-low method of cost estimation is that it uses only two data
points, and ignores all other observations. The rest of the data are ignored. An outlier can
cause a significant problem when the high-low method is used, if one of the two data points
happens to be an outlier. In other words, if the high activity level happens to be associated
with a cost that is not representative of the data, the resulting cost line may also not be
representative of the cost behaviour pattern.
3.17 Regression analysis is a statistical method that measures the average amount of change in the
dependent variable that is associated with a unit change in one or more independent variables.
Simple regression analysis estimates the relationship between the dependent variable and a
single independent variable, while multiple regression estimates the relationship between the
dependent variable and multiple independent variables. Multiple regression can help
management determine more accurate cost estimates because it is able to recognise the effects
of two or more factors that influence total costs, and therefore is more economically plausible.
Assume that a rug manufacturer is trying to estimate the indirect labour cost associated with
the manufacture of rugs, when production on one batch of rugs is stopped and another batch
started. Management believes that, in addition to machine hours, indirect labour costs are
also affected by the number of different batches worked on during the period (a batch-level
cost driver).
3.18 A particular least squares regression line may be evaluated on the basis of criteria such as
economic plausibility and the goodness of fit. The coefficient of determination, represented
by the R2 statistic, is used to evaluate the goodness of fit of the regression line. It indicates
the extent to which the pattern of variability of the dependent variable imitates the pattern of
variability of the independent variable. The more closely they vary (or move together), the
greater the fit between the two variables. This indicates the degree to which the change in
the dependent variable can be explained by the change in the independent variable.
The proportion of change in the dependent variable that can be explained by the change in
the independent variable is what we measure with the coefficient of determination (R2). The
higher the R2, the better the fit.
3.19 Some of the problems often encountered when collecting data for cost estimation include:
outliers which need to be detected and eliminated from the data set
3.20 A learning curve reflects how production efficiency increases with increased production. An
experience curve shows how product costs from across the value chain decrease with
increased production.
Branch managers salary Number of customer enquiries In practice, fixed for a wide range
of activity, usually one per branch
Number of staff
Number of staff hours worked
(full-time and casual)
Full-time customer service staff Number of customer enquiries In practice, step-fixed as it is
salaries /quotes contractually fixed for a wide range
of activity, until an additional full-
Number of bookings
time staff member is required
Number of staff
Number of full-time staff hours
worked
Casual customer service staff Number of customers Variable, casual labour
wages
Number of journeys quoted
Number of flight, accommodation
and car bookings made
Number of hours worked
Computer expenses Number of bookings processed Step-fixed, each computer can only
process a given number of enquiries
Number of desks
and bookings before an additional
Number of hours worked computer is required
Number of customers' quotes
provided
Telephone expenses Number of bookings processed A wide range of contracts are
available. In practice, this may be
Number of desks/telephones
fixed for a wide range of activity
Number of hours worked before additional charges are made
Number of customers' quotes
provided
Total raw
material cost
$1 800 000
$1 200 000
$600 000
Balls Produced
Total
Fixed cost
$80 000
$60 000
$40 000
$20 000
Balls Produced
4 Cost of electricity:
Actual Estimated
2 (a) The approximation is very accurate in the range of 40 000 to 60 000 km per month.
(b) The approximation is less accurate in the extremes of the longer range of 20 000 to
(e) Semivariable (or mixed): includes a fixed element ($4000 per month) and a
variable element ($0.20 per kilogram of sausages produced).
Variable cost at 61 500 machine hours (61 500 $0.10 per machine hour) 6 150
Cost equation:
Total utilities cost = $30 000 + $0.10X, where X denotes machine hours.
Regression Statistics
R 0.78833
R Square 0.62147
S 1 592.9189
ANOVA
d.f. SS MS F p-level
Coefficients
Intercept 26 306.25
Y = a + bX, where:
This can be expressed as total cost = fixed costs of $26 306.25 plus $0.192 per machine
hour. For comparison, this gives a cost at 39 000 machine hours:
2 Given that this question does not assume knowledge of the appendix, the evaluation will
focus on R2. In this case, the figure for R20.6215suggests that 62 per cent of the
variability of utility costs can be explained by changes in the machine hours. The higher the
R2 figure, the more confident the accountant can be that changes in the dependent variable
can be explained in terms of changes in the independent variable. In this case 38 per cent of
the variability of utility costs remained unexplained.
Regression Statistics
R 0.98105
R Square 0.96245
S 2 191.16457
Total number of
observations 12
ANOVA
d.f. SS MS F p-level
Y = a + bX, where:
This can be expressed as total cost = fixed costs of $29 568 plus $10.0957 per blood test
completed.
3 When 5500 tests are performed in a month the total monthly costs are predicted to be:
Note that this is very similar to the recorded cost for 5300 blood tests in the data provided
($87 000). With an R2 of 0.96245 (and an adjusted R2 of 0.9587), it appears that the number
of blood tests completed is the major factor in explaining the costs in the diagnostic blood
laboratory of Plasma Pathology.
Copyright 2015 McGraw-Hill Education (Australia) Pty Ltd
IRM t/a Langfield-Smith, Thorne, Smith, Hilton Management Accounting 7e
13
EXERCISE 3.29 (45 minutes) Estimating cost behaviour using multiple
methods: retailer
1 Variable electricity cost per hour = $3800 $2600 = $4 per hour
700 400
Cost formula: Monthly electricity cost = $1000 + $4 X, where X denotes hours of operation.
2 Regression analysis:
Using Excel
Regression statistics
Multiple R 0.975590116
R square 0.951776075
Observations 6
Cost formula:
(b) Regression:
3 Learning curves indicate how labour costs will change as the company gains experience
with the production process. Since labour time and costs must be predicted for both
budgeting and setting cost standards, the learning curve is a valuable tool.
(a) This is a fixed cost and, therefore, has no obvious cost driver in the short run. It is a facility
level cost. In the long run one cost driver may be the number of patients, because the larger
and busier the hospice, the more skilled (and, therefore, highly salaried) the administrator
will need to be, although the salary is unlikely to vary in proportion to the number of
patients.
Location of patients may be a cost driver as the dispersion may create extra travelling time
(but there is unlikely to be a proportional relationship here) (unit level).
(c) Depends whether the physiotherapist is paid by the hour or by the clinic. If paid hourly, the
length of time of a clinic and the number of patients are possible cost drivers (unit level). If
paid per clinic, the number of clinics held is the cost driver (batch level).
(d) Refer to (c) above. Perhaps the number of patients (unit level), severity of patient
conditions and the number of visits (batch level).
(e) Likely to be a fixed cost (product level, as it relates only to outpatients). It is a committed
cost with no obvious cost driver, although the cost of the lease may be affected by the size
of the cars and the length of time they can be kept.
(g) The depreciation cost is a fixed cost per pump but the total depreciation cost will vary with
the number of pumps, which is likely to vary with the number of patients (unit level).
(i) Number of shifts worked, which will vary to some degree, with the number of patients. At
a maximum capacity, where three shifts are worked every day, this becomes a fixed cost.
(j) While the amount of cleaning may vary with the number of patients, the contract is for a set
payment. Therefore, this is a fixed cost (facility level).
2 i 6 g 10 j
3 f 7 c 11 l
4 e 8 a
a The cost of paper used in The Sunshine Times is a variable cost. If the number of pages
varied for each edition, the number of pages would be an appropriate cost driver. However
since the number of pages for each edition is constant, the cost varies per newspaper
printedthe cost driver is units of production.
b The number of business cards printed is the cost driver for this variable cost.
d The number of units of production is the cost driver of this variable cost.
f If each set up consumes the same amount of resources the cost driver would be the number
of set ups. As the set ups are for different kinds of jobs it is likely that set up time would be
a suitable cost driver for this variable cost.
g A semi-variable cost, partly fixed (lease charge) and partly driven by the distance travelled
or number of deliveries.
i A variable cost; the cost driver is the number of business card designs undertaken.
Shipping Department
costs
$25 000
$24 000
$23 000
$22 000
$21 000
$20 000
$19 000
2 Highlow method:
Variable cost per unit of cost driver $24 240 - $20 400
=
5200 - 2000
where X denotes the number of kilograms of supplies loaded/unloaded during the month
4 Estimating the fixed and variable cost components using regression analysis can be
determined by using Excel and StatPlus, the output from which is reproduced below.
Regression statistics
R 0.77355
R Square 0.59838
S 796.98293
Standard
Coefficients Error
5 The formula to explain the behaviour of the Shipping Departments costs is as follows.
Y = a + bX,
where:
X = the independent variable (the kilograms of supplies handled for one month)
This can be expressed as total cost = fixed costs of $19 885.66 plus $0.885 per kilogram of
supplies handled.
7 On the basis of using the highlow method and regression analysis, the Shipping
Departments monthly cost behaviour was estimated as follows:
Using the highlow method, the following cost estimate was obtained:
Material-handling cost per month = $18 000 + $1.20 per unit of cost driver
Using regression analysis = $19 885.66 + $0.885 per unit of cost driver
The two methods yield different estimates because the highlow method uses only two data
points, ignoring the rest of the information. Regression analysis, on the other hand, is a
statistical technique that can be used to estimate the relationship between the dependent
In this case, the two data points used by the highlow method do not appear to be
representative of the entire set of data. Hence, I suggest that the cost line determined using
regression analysis be utilised.
The mining labour costs with on costs are considered as variable, because the labour cost is
$225 per tonne of ore extracted. This labour rate is the same when
315 000
1400 tonnes are extracted (labour rate = = $225) or when
1400
607 500
2700 tonnes are extracted (labour rate = = $225).
2700
2 Given the assumption that royalties is semi-variable we could use the high-low method to
identify its fixed and variable components.
Variable cost per unit of cost driver $224 500 $140 000
=
2700 1400
= ($30 000 + $0 + $49 000 + $280 000) + (($225 + 65) x 1 650) = $837 500
The cost effectiveness in utilising the trucking and hauling equipment can be improved by
planning the monthly production level so that the output is always slightly below the
maximum output (1500, 1900 and 2300 tonnes) of each step-fixed cost range.
4 The committed fixed costs refer to the facilities owned or used by the business as the bare
necessity of a basic organisation structure. As the name indicates, they cannot be avoided.
On the other hand, the discretionary fixed costs arise as a result of the management decision
to spend a particular amount of money for some purpose. For example, OMLs charitable
contribution is only managements decision.
In times of economic downturn, the management would be likely to cut the discretionary
fixed costs. This is because a discretionary cost can be avoidable. However, the cutting of
discretionary costs can cause long-term problems. For example, reducing discretionary costs
such as machine maintenance, employee training and advertising can lead to equipment
breakdowns, poorly used equipment, lack of knowledge about new software and reduced
sales. The decision to reduce these discretionary costs should not be undertaken lightly,
rather it should be a last resort and managers underspending in these areas should be
monitored.
Regression Statistics
R 0.993371
R Square 0.986785
S 242.405
Standard
Coefficients Error
Hours of maintenance
service 7.345228 0.285104
The coefficients for the regression are in the lower panel of output. The constant, or intercept, is
$1298.843, and the coefficients of the two variables are the number of photocopies and the number
of hours of maintenance. The regression equation can be expressed as follows:
2 The R2 for the equation is 0.987 (rounded), which means that 98.7 per cent of the variation
in the monthly maintenance cost can be explained by the variation in the numbers of hours
of maintenance and the number of photocopies produced. Given that the number of
observations (12) and the number of independent variables (2) are on the borderline for an
acceptable sample size, the adjusted R2 should be used (this measures the coefficient of
determination after adjusting for a relatively small number of observations). In this example,
an adjusted R2 of 0.984 (rounded) occurs, thus, there is little change in the outcome.
The fixed cost per hour is a misleading amount because it will change as the number of
hours change. For example, at 600 hours of maintenance, the fixed cost per hour is $0.72
($432.95/600 hours).
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23
PROBLEM 3.38 (40 minutes) Interpreting regression analysis in cost
estimation: catering company
1 The original method was simply the average overhead per hour for the last 12 months and
did not distinguish between fixed and variable costs. Dana divided total overhead by total
labour hours, which effectively treated all overhead as variable. Regression analysis
measures the behaviour of the overhead costs in relation to labour hours and is a model that
distinguishes between fixed and variable costs within the relevant range of 2500 to 7500
labour hours.
Regression Statistics
Multiple R 0.980976
R Square 0.962313
Adjusted R
Square 0.958544
Observations 12
Labour
hours 3.94936 0.247152 15.97946 1.9E-08 3.39867 4.500049 3.39867 4.500049
Using the regression results the variable cost per person is:
Total $28.37
* Rounded.
3 The minimum bid for a 250-person cocktail party would be $7093. The amount is calculated
by multiplying the variable cost per person of $28.37 by 250 people. At any price above the
variable cost, Dana will be earning a contribution toward his fixed costs.
4 Other factors that Dana should consider in developing a bid include the following:
analysis of the competition. If competition is rigorous, Dana may not have much
bargaining power
a determination of whether or not Danas bid will set a precedent for lower prices
the realisation that regression analysis is based on historical data, and that any
anticipated changes in the cost structure should be considered.
= 0.93 + (0.0936)(11)
= $1.9596 million
= $1 959 600
Method B:
= 0.5597 + (0.02219)(60)
= $1.8911 million
= $1 891 100
Method C:
= $2.172932 million
= $2 172 932
where 1.445 = average annual rent expense for the 10-year period from
Year 1 to Year 10
39.9 = average annual revenue for the 10-year period from Year 1 to
Year 10
An advantage of Method B is that this method is logical because as revenues increase, the
stores increase, and thus rental expense increases. A disadvantage of Method B is that a
prediction of revenues is required.
An advantage of Method C is that the calculations are relatively easy and the method is
easy to understand. A disadvantage of Method C is that the arithmetic average is an
oversimplification that does not recognise any relationship between the variables.
3 Motomation should select Method B, because the relationship between revenue and rental
expense is causally based and it has economic plausibility.
4 The use of multiple regression analysis on the data provided would allow the inclusion of
all causal factors and should give a greater degree of accuracy to the projections.
3 No. Labour is becoming increasingly skilled at making the tables. The hours taken is an
average of the batches and the first one produced of the first batch would take more than 10
hours, and the last of the second batch would take less than 6 hours.
4 Cumulative production is now 20, so the time taken to produce the next batch of 60 can be
estimated as follows:
Cumulative time taken for 80 tables = 80 (0.8 hours 80% 80%) = 40.96 hrs
5 The direct labour cost, per table, for the batch of 60 is:
Over time, tables will appear to get cheaper. Perhaps Austral needs to take a more long-run
view of their pricing, to stimulate early demand so that they can move quickly along the
learning curve.
(2)
relevant
range
Variable cost per unit cost of driver = ($11100 $8300) $4.667 per patient*
(1200 600)
*(rounded)
= $5600 (rounded)
However, it is not appropriate to use this cost function to estimate the administrative costs at
300 patients, as this is well below the relevant range.
Regression Statistics
Multiple R 0.927088078
R Square 0.859492304
Observations 6
ANOVA
df SS MS F Significance F
8
Intercept 6 181.36646 730.0175478 8.467422 0.0010661 4 154.51281 208.220107
Y = a + bX, where:
Y = $6181 + $3.84X
This can be expressed as total cost = fixed costs of $6181 plus $3.84 per patient
(b) The clinics administrative cost during the month when 800 patients visit the hospital would
be $6181 + $3.84 x 800 = $9253
Regression Statistics
Multiple R 0.92919029
R Square 0.86339459
Observations 6
ANOVA
df SS MS F Significance F
X1= the independent variable (the number of emergency procedures for one month)
that is, Administrative cost = $5944 + $24.91 per emergency procedure + $3.81 per patient
(d) Clinics administrative cost during the month when 800 patients visit the hospital and 12
emergency procedures taken place would be $9291
When patient load and emergency procedures are used as independent variables R2 increases
only marginally to 0.863 and the adjusted R2 is 0.772 per the above calculations. Thus the
adjusted R2 indicates that the addition of emergency procedures reduces rather than
increases the explanatory power.
The real problem is that, once we limit the analysis to observations within the relevant
range, there are only 6 observations, which undermines the effectiveness of the regression
analysis.
8 The equation from highlow method is based on only two observations and therefore should
be viewed with caution. However, as discussed above, even though both the regression cost
models have a high R2 and therefore high explanatory power, there are too few observations
to rely on the results of these regression models.
The overhead rate developed from the least-squares regression recognises the relationship
between cost and volume in the data. The regression suggests that there is a component of
the cost ($26 201 per month) that is unrelated to total direct labour hours. This cost
component is the intercept on the vertical axis and is often considered to be the fixed cost as
long as the activity level is within the relevant range. Thus, the least-squares regression
results in a cost function with two components: fixed cost per month and variable cost per
direct labour hour. This cost formula can be used to predict total overhead at any activity
level within the relevant range.
3 The minimum bid should include the following incremental costs of the project:
4 Yes, Greenscape Pty Ltd can rely on the formula as long as Drake recognises that there are
some shortcomings. The fact that least-squares regression estimates cost behaviour increases
the usefulness of rates calculated from cost data. However, the regression is based on
historical costs that may change in the future, and Drake must assess whether the cost
equation would need to be revised for future cost increases or decreases.
(b)
(c) The two scenarios in (a) and (b) differ in terms of the activities to be undertaken. Scenario
(a) involves a large amount of seeding activity and relatively little planting activity. Scenario
(b) involves considerably less seeding activity, but a great deal more planting activity. An
activity-based costing system accounts for the different costs in projects involving different
mixes of activity.
Regression Statistics
R 0.9706
R Square 0.9421
S 1 747.948
ANOVA
p-
d.f. SS MS F level
p- H0 (2%)
Coefficients Std Error LCL UCL t Stat level rejected?
Total overhead = $11 188 + $6.16 per direct labour hour + $0.216 per square metre of turf +
$32.17 per planting.
Regression Statistics
Multiple R 0.927176006
R Square 0.859655346
Adjusted R
Square 0.845620881
Observations 12
ANOVA
df SS MS F Significance F
Total 11 422000000
3 Regression functions for the various combinations of cost drivers are shown below. These
results suggest that, when considered individually, DL hours is the best of the three cost
drivers. (STS lacks economic plausibility with a negative intercept and PL has low R2.)
When combined, the three independent variable model performs the best, although DLH
combined with either STS or PL seems to be almost as effective. However, before
reaching a final conclusion on the relative performance of these models, a more detailed
analysis should be completed, considering factors such as the standard error of the
coefficients and the F statistics.
Observations 12 Observations 12
Coefficients Coefficients
(DLH) 5.036231834
(STS) 0.31914144
Regression Statistics
Multiple R 0.926434568
R Square 0.858281008
Observations 12
Coefficients
Intercept 5437.381336
(STS) 0.59887704
(PL) 4.02114619