The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received:

The driver used was the number of machine hours.
Using the cost formula for the equipment maintenance cost, what is the predicted cost of equipment maintenance for April, assuming that 8,000 machine hours will be logged in April?
A) $185,000
B) $140,000
C) $200,000
D) None of these are correct.

Question

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received: ​
​
 The driver used was the number of machine hours.
Using the cost formula for the equipment maintenance cost, what is the predicted cost of equipment maintenance for April, assuming that 8,000 machine hours will be logged in April?
A) $185,000 
B) $140,000 
C) $200,000 
D) None of these are correct.

Quizplus · Accepted Answer

11ea8a4c_4908_c3b5_a0e6_d595640e1876_TB5550_00

The Method of Least Squares Was Used to Develop a Cost