Ballard Manufacturing Inc. uses least-squares regression to analyze a variety of operating costs. A staff assistant determined that monthly machine hours (MH) have a strong cause-and-effect relationship with maintenance costs, and generated the following statistics:
Intercept: $200,000
b coefficient: $5.20
Total machine hours for the year: 40,500
Required:
A. Construct the company's regression equation.
B. Based on your answer in part "A," identify Wellington's dependent variable and independent variable.
C. What does the b coefficient really represent?
D. Predict the company's maintenance cost in a month when 4,000 machine hours are worked.

Question

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The Answer of Ballard Manufacturing Inc. uses least-squares regression to analyze a variety of operating costs. A staff assistant determined that monthly machine hours (MH) have a strong cause-and-effect relationship with maintenance costs, and generated the following statistics:
Intercept: $200,000
b coefficient: $5.20
Total machine hours for the year: 40,500
Required:
A. Construct the company's regression equation.
B. Based on your answer in part "A," identify Wellington's dependent variable and independent variable.
C. What does the b coefficient really represent?
D. Predict the company's maintenance cost in a month when 4,000 machine hours are worked.