Rushmont, Inc.operates a small package delivery service in the Nashville suburbs.If the company uses a regression equation to forecast total operating costs, the coeﬃcient of the equation's independent variable would correspond to the:
A)variable operating cost per delivery.
B)ﬁxed operating costs.
C)number of deliveries.
D)total variable operating costs.
E)total operating costs.

Question

Quizplus · Accepted Answer

The coefficient of the independent variable in a regression equation represents the change in the dependent variable for a one-unit change in the independent variable. In this context, it corresponds to the variable operating cost per delivery.