Clough Company Is Interested in Establishing the Relationship Between Utility

Clough Company is interested in establishing the relationship between utility costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:
$\begin{array}{llll}&&\text { Utility } \\\text { Month } & \text { Machine Hours } & \text { Costs }\\\text { January } & 3,250& \$ 2,080 \\\text { February } & 3,77 0 & 25,200 \\\text { March } & 2,470 & 16,200 \\\text { April } & 4,030 & 27,600 \\\text { May } & 4,940 & 33,900 \\\text { June } & 4,290 & 26,400 \\\text { July } & 5,330 & 29,700 \\\text { August } & 4,550 & 27,300 \\\text { September } & 2,600 & 18,600 \\\text { October } & 4,810 & 31,200 \\\text { November } & 6,110 & 37,200 \\\text { December } & 5,460& 33,300\end{array}$

$$\begin{array}{c}\text { SUMMMARY OUTPUT}\\\text { Regression Statistics}\\\begin{array} { l r } \text { Multiple R } &96.5 \% \\\text { R Square } &93.2 \% \\\text { Adjusted R-Square } &92.5 \% \\\text { Starndard Eror } & 1,710.21\\\text { Obserrations } & 12.00 \\\end{array}\end{array}$$
$\begin{array}{|l|r|r|r|r|r|r|}\hline && \text { Standard } & && \text { Lower } & \text { Upper } \\&\text { Coefficients } & \text { Error } & \text { t Stat } & \text { P-value } & 95 \% & 95 \% \\ \hline \text { Intercept } & 4,472.26 & 2,019.39 & 2.21 & 0.051 & -27.23 & 8971.74 \\\hline \text { Machine } & 5.329 & 0.455 & 11.70 & 3.69 \mathrm{E}-07 & 4.314 & 6.343 \\\hline \end{array}$


Required:
(a.) What is the equation for utility costs using the regression analysis?
(b.) Does the variable "machine hours" have statistical significance? Explain.
(c.) Prepare an estimate of utility costs for a month when 3,000 machine hours are worked.