Use the following information to answer the next question(s).
The method of least squares produced the following computer printout using direct labour hours as the activity.

-The estimate of the fixed component for maintenance costs is
A) $18,286.
B) $20,276.
C) $20,318.
D) $20,360.

Question

Use the following information to answer the next question(s).
The method of least squares produced the following computer printout using direct labour hours as the activity.
 
-The estimate of the fixed component for maintenance costs is
A) $18,286. 
B) $20,276. 
C) $20,318. 
D) $20,360.

Quizplus · Accepted Answer

The estimate of the fixed component for maintenance costs is found in the intercept coefficient of the regression equation, which is $20,318.

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