Thul Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow: If the controller uses regression analysis to estimate costs,the estimate of the variable portion of electricity cost is:
A)Cost = $11.70 × Machine-hours.
B)Cost = $0.93 × Machine-hours.
C)Cost = $5.77 × Machine-hours.
D)Cost = $0.49 × Machine-hours.

Question

Thul Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow:  If the controller uses regression analysis to estimate costs,the estimate of the variable portion of electricity cost is:
A)Cost = $11.70 × Machine-hours. 
B)Cost = $0.93 × Machine-hours. 
C)Cost = $5.77 × Machine-hours. 
D)Cost = $0.49 × Machine-hours.

Quizplus · Accepted Answer

The Answer of Thul Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow:  If the controller uses regression analysis to estimate costs,the estimate of the variable portion of electricity cost is:
A)Cost = $11.70 × Machine-hours. 
B)Cost = $0.93 × Machine-hours. 
C)Cost = $5.77 × Machine-hours. 
D)Cost = $0.49 × Machine-hours.

Thul Company Is Interested in Establishing the Relationship Between Electricity