Terry Smith Corporation used least squares regression analysis to obtain the following output: Personnel Department Cost Explained by Number of Employees

Constant $5,800

Standard error of Y estimate $630

R - squared 0.8924

No. of observations 20

Degrees of freedom 18

X coefficient(s) 1.902

Standard error of coefficient(s) 0.0966

a. What is the total fixed cost? b. What is the variable cost per employee? c. Prepare the line ar cost function. d. What is the coefficient of determination? Comment on the goodness of fit

Question

Terry Smith Corporation used least squares regression analysis to obtain the following output: Personnel Department Cost Explained by Number of Employees

Constant	$5,800
Standard error of Y estimate	$630
R - squared	0.8924
No. of observations	20
Degrees of freedom	18

X coefficient(s)	1.902
Standard error of coefficient(s)	0.0966

a. What is the total fixed cost? b. What is the variable cost per employee? c. Prepare the line ar cost function. d. What is the coefficient of determination? Comment on the goodness of fit

Quizplus · Accepted Answer

The Answer of Terry Smith Corporation used least squares regression analysis to obtain the following output: Personnel Department Cost Explained by Number of Employees

Constant	$5,800
Standard error of Y estimate	$630
R - squared	0.8924
No. of observations	20
Degrees of freedom	18

X coefficient(s)	1.902
Standard error of coefficient(s)	0.0966

a. What is the total fixed cost? b. What is the variable cost per employee? c. Prepare the line ar cost function. d. What is the coefficient of determination? Comment on the goodness of fit

Terry Smith Corporation Used Least Squares Regression Analysis to Obtain