Jorgenson Corporation has provided the following data for the first five months of the year: Using the least-squares regression method of analysis, the estimated monthly fixed component of lubrication cost is closest to:
A) $1,050
B) $1,060
C) $1,121
D) $1,144

Question

Jorgenson Corporation has provided the following data for the first five months of the year:  Using the least-squares regression method of analysis, the estimated monthly fixed component of lubrication cost is closest to:
A) $1,050 
B) $1,060 
C) $1,121 
D) $1,144

Quizplus · Accepted Answer

The regression line is Y = 1121.18 + 1.5588X and the R² is 0.9607. Therefore, the fixed component of lubrication cost is closest to $1,121.

Jorgenson Corporation Has Provided the Following Data for the First