Using the least-squares regression method, the estimated total fixed cost per month for maintenance is closest to:
A)$470
B)$416
C)$400
D)$378

Question

Quizplus · Accepted Answer

Using the least-squares regression method and the given data, we get the following results:
Slope (variable cost per maintenance hour) = $22
Y-intercept (estimated total fixed cost per month) = $370

Therefore, the estimated total fixed cost per month for maintenance is closest to $416, which is option B.

Using the Least-Squares Regression Method, the Estimated Total Fixed Cost