Gelrud Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the fixed component of utility cost per month is closest to:
A)$19,733
B)$5,809
C)$19,962
D)$5,628

Question

Gelrud Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the fixed component of utility cost per month is closest to:
A)$19,733 
B)$5,809 
C)$19,962 
D)$5,628

Quizplus · Accepted Answer

Using Microsoft Excel functions,the solution is:
Fixed utility cost per month = Intercept = $5,628

Gelrud Corporation's Recent Utility Costs Are Listed Below: Management Believes