The Keith Corporation used regression analysis to predict the annual cost of indirect materials.The results were as follows: Indirect Materials Cost
Explained by Units Froduced
$\begin{array}{lr}
\text { Constant } & \$ 19,885 \
\text { Standard error of Y estimate } & \$ 9,560 \
\text { R - squared } & 0.7832 \
\text { No. of observations } & 22 \
\text { Degrees of freedom } & 20 \
& \
\text { X coefficients) } & 3.75 \
\text { Standard error of coefficients) } & 2.5576
\end{array}$ The linear cost function is _____.
A)Y = $19,885 + $3.75X
B)Y = $9,560 + $2.56X
C)Y = $9,560 + $3.75X
D)None of these answers is correct.

Question

The Keith Corporation used regression analysis to predict the annual cost of indirect materials.The results were as follows: Indirect Materials Cost 
Explained by Units Froduced
$\begin{array}{lr}
\text { Constant } & \$ 19,885 \
\text { Standard error of Y estimate } & \$ 9,560 \
\text { R - squared } & 0.7832 \
\text { No. of observations } & 22 \
\text { Degrees of freedom } & 20 \
& \
\text { X coefficients) } & 3.75 \
\text { Standard error of coefficients) } & 2.5576
\end{array}$ The linear cost function is _____.
A)Y = $19,885 + $3.75X
B)Y = $9,560 + $2.56X
C)Y = $9,560 + $3.75X
D)None of these answers is correct.

Quizplus · Accepted Answer

The linear cost function is represented by the equation Y = Constant + (Coefficient of X)X, which in this case is Y = $19,885 + $3.75X, matching option A.

The Keith Corporation Used Regression Analysis to Predict the Annual