Question

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie’s prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company’s biggest source of revenue.

A portion of Leslie’s operating information for the company’s last year follows:

Month	Number of Jerseys Printed	Operating Cost
January	200	$5,785
February	220	5,865
March	535	8,635
April	675	9,725
May	630	9,275
June	430	6,245
July	340	6,170
August	250	5,940
September	175	4,880
October	320	6,050
November	260	5,980
December	195	4,930

Required:
   

5. Perform a least-squares regression analysis on Leslie’s data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.)


  
6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslie’s operating costs. (Round your answers to 2 decimal places.)



7. Using the least-squares regression results, calculate the store’s expected operating cost if it prints 635 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)

Answer 1