The Stewart Company used regression analysis to predict the annual cost of utilities. The results were as follows:
-The linear cost function is
A) Y = $16,650 + $7.16X.
B) Y = $15,711 + $1.86X.
C) Y = $ 3,726 + $0.96X.
D) Y = $ 6,562 + $0.46X.

Question

The Stewart Company used regression analysis to predict the annual cost of utilities. The results were as follows: 
-The linear cost function is
A) Y = $16,650 + $7.16X. 
B) Y = $15,711 + $1.86X. 
C) Y = $ 3,726 + $0.96X. 
D) Y = $ 6,562 + $0.46X.

Quizplus · Accepted Answer

The linear cost function is Y = $16,650 + $7.16X. This is because the fixed cost is $16,650 and the variable cost is $7.16 per unit.

The Stewart Company Used Regression Analysis to Predict the Annual