Solved

Jorgensen Company Used Least Squares Regression Analysis to Obtain the Following

Question 123

Essay

Jorgensen Company used least squares regression analysis to obtain the following output:
Mainterance Department Cost
Explained by Number of Labor Hours
 Constant 8,200 Standard error of Y estimate 630R20.94 No. of observations 20 Degrees of freedom 18 X coefficient 2.21 Standard error of coefficient 0.0966\begin{array}{ll}\text { Constant } & 8,200 \\\text { Standard error of } Y \text { estimate } & 630 \\\mathrm{R}^{2} & 0.94 \\\text { No. of observations } & 20 \\\text { Degrees of freedom } & 18 \\\text { X coefficient } & 2.21\\\text { Standard error of coefficient }&0.0966\end{array}
Required:
A) What is the total fixed cost of the maintenance department?
B) What is the variable cost per labor hour for the maintenance department?
C) What is the linear cost function?
D) What is the coefficient of determination? Comment on the goodness of fit.

Correct Answer:

verifed

Verified

A)$8,200
B)$2.21
C)Y = $8,200 + $2.21X
W...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents