A linear regression analysis indicated a constant of 6,025.50,an X coefficient of 24.75,and an R-squared of 0.65.The estimated cost when the independent variable is 350 is:
A)$55,386
B)$14,688
C)$11,657
D)$10,629

Question

Quizplus · Accepted Answer

The estimated cost can be calculated using the linear regression equation: $ \text{Cost} = \text{Constant} + (\text{X coefficient} \times \text{Independent variable}) $. Plugging in the given values: $ \text{Cost} = 6025.50 + (24.75 \times 350) = 6025.50 + 8662.50 = 14688 $.

A Linear Regression Analysis Indicated a Constant of 6,025