SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9940962552
R Square 0.9882273647
Adjusted R Square 0.9843031529
Standard Error 133.2261605
Observations 5

ANOVA
df SS MS F Significance F
Regression 1 4469752.370474 4469752 251.8282 0.0005440518
Residual 3 53247.62952603 17749.21
Total 4 4523000

Coefficients Standard Error t Stat P-value Lower 95%

Intercept -28.59147656 96.2008795323 -0.29721 0.7857 -334.745610191
Prices of raw material ($ 1.1973940825 0.0754544552 15.8691 0.000544 0.9572643303

Answers:
1. y = mx+c y = 1.1974x - 28.591
2. Coefficient of determination= 0.988227365 Interpretation: 0.988227365 is the proportion of variance in the cost of product
3. Correlation= 0.994096255, as this value lies between 0.5 and 1, hence it is a strong positive correlation
4. Significance F = 0.000544052 which is less than 0.5 that indicates there is a linear relationship between price of raw materia
 Upper 95% Lower 95.0% Upper 95.0%
277.5626570744 -334.74561 277.5626570744
1.4375238347 0.95726433 1.4375238347

rtion of variance in the cost of product that is predictable from the prices of raw material
ositive correlation
ationship between price of raw material and cost of product.
REGRESSION ANALYSIS
Prices of raw material ($) Cost of product ($)
500 750
750 800 3500
255 250
1000 1050 3000
f(x) = 1.1973940825x - 28.5914765583
2500 3000 R² = 0.9882273647
2500

Cost of product ($)

2000
Independent variable: Prices of raw material
Dependant variable: Cost of product 1500

1000
Answers on sheet 2
500

0
0 500 1000 1500 2000

Prices of Raw Material ($)

25x - 28.5914765583
7

1000 1500 2000 2500 3000

Prices of Raw Material ($)