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Toronto Company Makes Cell Phones  Intercept 2,225 X Variable 1 9.75\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}

Question 43

Multiple Choice

Toronto Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.Coefficients shown by a regression program are:
 Electricity  Machine  Month  cost  hours  May $7,560570 June 8,220625 July 7,480546 August 7,186518\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\\text { Month } & \text { cost } & \text { hours }\\\text { May } & \$ 7,560 & 570 \\\text { June } & 8,220 & 625 \\\text { July } & 7,480 & 546 \\\text { August } & 7,186 & 518\end{array}  Intercept 2,225 X Variable 1 9.75\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}
-Refer to the Figure.What is the fixed cost of electricity when using the results of regression?


A) $2,180
B) $2,200
C) $2,225
D) $2,250

Correct Answer:

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