Refer to Saskatoon Company. Using the least squares (regression) method, what is the forecasted utility cost at 3,000 machine hours (rounded to the nearest dollar)?
A) $10,631
B) $28,288
C) $37,116
D) $45,945

Question

Quizplus · Accepted Answer

The regression equation for Saskatoon Company is Utility Cost = $8,577 + ($7.26 × Machine Hours). 
Plug in 3,000 for Machine Hours:
Utility Cost = $8,577 + ($7.26 × 3,000) = $37,116 (rounded to the nearest dollar). Therefore, the choice is C.