Using the least-squares regression method, the estimate of the variable component of maintenance cost per machine-hour is closest to:
A)$1.85
B)$10.30
C)$1.67
D)$1.90

Question

Quizplus · Accepted Answer

Without seeing the data or the regression equation, we cannot accurately determine which answer is correct. However, the least-squares regression method is used to find the best-fitting line through a set of data points, so the estimate should be close to the data and the units of maintenance cost per machine-hour. Based on the answer choices, answer C is the only option closest to a reasonable estimate for maintenance cost per machine-hour.

Using the Least-Squares Regression Method, the Estimate of the Variable