A regression equation's fixed cost component is represented by the__________ on the regression analysis output.
A)Intercept coefficient
B)X variable 1 coefficient
C)R-square
D)Residual

Question

Quizplus · Accepted Answer

The intercept coefficient in a regression equation represents the fixed cost component. This is because it represents the value of the dependent variable when all the independent variables are equal to zero, which is essentially the fixed cost of the equation or the portion that does not change with different levels of the independent variables. Therefore, the intercept coefficient is the best choice to represent the fixed cost component of the equation.

A Regression Equation's Fixed Cost Component Is Represented by The__________