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The summary analyzes the relationship between Intel Company's total operating expenses and two independent variables: Selling & Administrative (S&A) expenses and Research & Development (R&D) expenses from 2005 to 2014. There is a positive linear relationship between total operating expenses and both S&A expenses and R&D expenses. The model with S&A expenses as the independent variable has an R-squared value of 0.72 and the model with R&D expenses has an R-squared value of 0.68, indicating both models fit the data well. Both relationships are considered economically plausible.

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Alex Velez
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22 views8 pages

Cost

The summary analyzes the relationship between Intel Company's total operating expenses and two independent variables: Selling & Administrative (S&A) expenses and Research & Development (R&D) expenses from 2005 to 2014. There is a positive linear relationship between total operating expenses and both S&A expenses and R&D expenses. The model with S&A expenses as the independent variable has an R-squared value of 0.72 and the model with R&D expenses has an R-squared value of 0.68, indicating both models fit the data well. Both relationships are considered economically plausible.

Uploaded by

Alex Velez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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SUMMARY OUTPUT

Regression Statistics
Multiple R
0.8512914638
R Square
0.7246971564
Adjusted R Square
0.6902843009
Standard Error
2.3193835547
Observations
10
ANOVA
df
Regression
Residual
Total

Intercept
Selling & Admin

1
8
9

SS
MS
F
113.2872394083 113.2872 21.05891
43.0363205917 5.37954
156.32356

Coefficients
-1.2509750237
2.9864867844

Standard Error
t Stat
P-value
4.5396987069 -0.275563 0.789867
0.6507927015 4.588999 0.001781

Y=-1.251 + 2.986X
RESIDUAL OUTPUT
Observation
1
2
3
4
5
6
7
8
9
10

Predicted Y
15.7421347794
16.966594361
14.876053612
15.055242819
22.4318651765
17.5937565858
21.6553786125
22.8201084584
22.909703062
23.0291625333

Residuals
-0.8421347794
-0.376594361
0.633946388
0.854757181
-3.5618651765
-0.5337565858
0.3346213875
2.8098915416
3.490296938
-2.8091625333

Significance F
0.0017809

Lower 95% Upper 95%Lower 95.0%


Upper 95.0%
-11.719539 9.21758897 -11.71954 9.217589
1.48575612 4.48721745 1.485756 4.487217

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.8297093308
R Square
0.6884175736
Adjusted R Square
0.6494697704
Standard Error
2.4674803475
Observations
10
ANOVA
df
Regression
Residual
Total

SS
MS
1 107.6158858792 107.6159
8 48.7076741208 6.088459
9
156.32356

Coefficients
8.4972473737
1.4343575197

Intercept
Research & Devolp.

Standard Error
t Stat
P-value
2.6871916008 3.162129 0.01335205
0.341171641 4.204211 0.00297933

Y=8.497 + 1.434X
RESIDUAL OUTPUT
Observation
1
2
3
4
5
6
7
8
9
10

Predicted Y
15.8841886004
16.9169260146
16.7591466874
16.7017723866
16.6013673603
17.9353198536
20.4741326635
23.0559761991
23.701437083
25.0497331515

F
17.675389

Residuals
-0.9841886004
-0.3269260146
-1.2491466874
-0.7917723866
2.2686326397
-0.8753198536
1.5158673365
2.5740238009
2.698562917
-4.8297331515

Significance F
0.002979327

Lower 95% Upper 95%Lower 95.0%


Upper 95.0%
2.30057243 14.6939223 2.300572 14.69392
0.647614305 2.22110073 0.647614 2.221101

Intel Company

Selling
&
Year
Admin
2005 $
2006 $
2007 $
2008 $
2009 $
2010 $
2011 $
2012 $
2013 $
2014 $

5.69
6.10
5.40
5.46
7.93
6.31
7.67
8.06
8.09
8.13

Research
&
Develop
$
5.15
$
5.87
$
5.76
$
5.72
$
5.65
$
6.58
$
8.35
$
10.15
$
10.60
$
11.54

Total
Operating
expenses
$
14.90
$
16.59
$
15.51
$
15.91
$
18.87
$
17.06
$
21.99
$
25.63
$
26.40
$
20.22

$
Total operating exp.

(Numbers in billions)
$30.00
$25.00
$20.00
$15.00
TOTAL
OPERATING EXP.
$10.00
$5.00
$$4.00

$5.00

$6

$30.00
$25.00
$20.00
Total operating exp.

$15.00
$10.00
$5.00
$$5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 $8.50
S&a eXPENSE

$30.00
$25.00
$20.00

$15.00
TAL
OPERATING EXP.
$10.00
$5.00
$$4.00

$5.00

$6.00

$7.00

$8.00

R&D EXPENSE

$9.00

$10.00 $11.00 $12.00

Report:
Economic Plausability

S&A Exp. as an independent var.


A positive relationship between
total operating expense and
S&A exp. Is economically
plausible.
r^2=0.72; standard error of
regression = $2.32

R&D Exp. as an indepe


A positive relationship bet
total operating expense a
R&D exp. Is economically
plausible.
r^2=0.68; standard error
regression = $2.47

Significance of
independent variable

The t-value of 4.59

The t-value of 3.16

Specification analysis of
estimation assumptions

Plot of the data indicates that


that the assumptions are linear.

Plot of the data indicates


that the assumptions are

Goodness of fit

&D Exp. as an independent var.


positive relationship between
otal operating expense and
&D exp. Is economically

^2=0.68; standard error of


egression = $2.47

he t-value of 3.16

lot of the data indicates that


hat the assumptions are linear.

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