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: Based on the results of the regression analysis,the estimate of administrative costs in a month with 1,000 credit hours would be: (rounded to the nearest whole dollar)
A)$198,808.
B)$201,000.
C)$199,969.
D)$96,409.

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:  Based on the results of the regression analysis,the estimate of administrative costs in a month with 1,000 credit hours would be: (rounded to the nearest whole dollar)
A)$198,808. 
B)$201,000. 
C)$199,969. 
D)$96,409.

Quizplus · Accepted Answer

According to the regression analysis, the estimated administrative cost for a month with 1,000 credit hours is $199,969. This is the closest estimate among the given options, so C is the best choice.

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