The Business School at Eastern College is accumulating data as a first step in the preparation of next year's budget development.One cost that is being looked at closely is administrative costs as a function of student credit hours.Data on administrative costs and credit hours for the past thirteen months are shown below: The controller's office has analyzed the data and has given you the results from the regression analysis: If the controller uses regression analysis to estimate costs,the estimate of the variable portion of administrative salaries is:
A)Cost = $8.63 × Credit-hours.
B)Cost = $0.87 × Credit-hours.
C)Cost = $103.56 × Credit-hours.
D)Cost = $11.99 × Credit-hours.

Question

The Business School at Eastern College is accumulating data as a first step in the preparation of next year's budget development.One cost that is being looked at closely is administrative costs as a function of student credit hours.Data on administrative costs and credit hours for the past thirteen months are shown below:  The controller's office has analyzed the data and has given you the results from the regression analysis:  If the controller uses regression analysis to estimate costs,the estimate of the variable portion of administrative salaries is:
A)Cost = $8.63 × Credit-hours. 
B)Cost = $0.87 × Credit-hours. 
C)Cost = $103.56 × Credit-hours. 
D)Cost = $11.99 × Credit-hours.

Quizplus · Accepted Answer

The Answer of The Business School at Eastern College is accumulating data as a first step in the preparation of next year's budget development.One cost that is being looked at closely is administrative costs as a function of student credit hours.Data on administrative costs and credit hours for the past thirteen months are shown below:  The controller's office has analyzed the data and has given you the results from the regression analysis:  If the controller uses regression analysis to estimate costs,the estimate of the variable portion of administrative salaries is:
A)Cost = $8.63 × Credit-hours. 
B)Cost = $0.87 × Credit-hours. 
C)Cost = $103.56 × Credit-hours. 
D)Cost = $11.99 × Credit-hours.

The Business School at Eastern College Is Accumulating Data as a First