The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance for the Regina Company. The following computer output was received:
The driver used was the number of machine hours.
$\begin{array}{lr}
\text { Intercept } & 32,000 \
\text { Slope } & 25
\end{array}$
-Refer to the Figure.What is the independent variable of the cost formula for equipment maintenance?
A)number of machine hours
B)the variable rate
C)the fixed cost
D)the total cost

Question

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance for the Regina Company. The following computer output was received:
The driver used was the number of machine hours.
 $\begin{array}{lr}
\text { Intercept } & 32,000 \
\text { Slope } & 25
\end{array}$
-Refer to the Figure.What is the independent variable of the cost formula for equipment maintenance?
A)number of machine hours
B)the variable rate
C)the fixed cost
D)the total cost

Quizplus · Accepted Answer

The independent variable is the number of machine hours, as it is the driver used in the regression analysis to predict the dependent variable, which in this case is the cost of monthly equipment maintenance.

The Method of Least Squares Was Used to Develop a Cost