# 1. Assessing computer literacy: For purposes of assessing computer literacy , use theaccompanying data as

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Final Version of Acct. 306 Assessment Project—Spring 20171. Assessing computer literacy: For purposes of assessing computer literacy , use theaccompanying data as directed below.Graphical analysis:a. Create a scatterplot of the observed number of units produced and the relatedmanufacturing overhead.b. Fit a regression line to the scatterplot.c. Display the equation of that line and also r-squared on the scatterplot.d. Simple regression: Use the Regression tool under the add-in “Data Analysis” ofExcel to generate a spreadsheet of output data with “UNITS PRODUCED” as theINDEPENDENT variable and “MANUFACTURING OVERHEAD” as theDEPENDENT variable.e. Multiple regression: Use the Regression tool to determine a regression equationusing the following two independent variables—(1) “units produced” and (2)“number of production batches” and using manufacturing overhead as theDEPENDENT variable.2. Assessing critical thinking: For purposes of assessing critical thinking, please answer thefollowing questions:a. What kind of relationship does the scatterplot show between the variables identifiedin 1(a)?b. Using the result of question 1(d), what is your estimate of manufacturing overhead if150 units were to be produced?c. How would you describe the quality of the relationship in part (a) based on the valueof r-squared?d. After doing 1(e), do you believe that adding a second independent variable, “numberof production batches” to the regression analysis improves the resulting regressionestimate compared to the result obtained using the simple regression equation thatyou computed by using just one independent variable, “number of units produced?”Explain the reason for your answer from the Regression tool output.e. DETERMINE THE FOLLOWING DATA: (1) average values for DM cost/unit andDL cost/unit and (2) the VARIABLE manufacturing overhead cost/unit and the totalFIXED manufacturing overhead cost from the SIMPLE regression analysis. Once youhave the data, calculate the BREAKEVEN POINT IN UNITS by inserting a formulainto a cell on your Excel spreadsheet.

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