Around Town Incorporated operates a small package delivery service in the Chicago suburbs. If the company uses a regression equation to forecast total operating costs, the equation's intercept 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 intercept in a regression equation represents the fixed costs, which are the costs that do not vary with the number of deliveries.

Around Town Incorporated Operates a Small Package Delivery Service in the Chicago