Figure 3-6 The Stanford Company incurred the following maintenance cost during a five month period:
Refer to Figure 3-6. Using a computer or calculator, compute the estimate of the fixed portion of maintenance costs using the method of least squares. Rounded to dollars, this value would be
A) $575.
B) $166.
C) $160.
D) $66.

Question

Figure 3-6 The Stanford Company incurred the following maintenance cost during a five month period:
 Refer to Figure 3-6. Using a computer or calculator, compute the estimate of the fixed portion of maintenance costs using the method of least squares. Rounded to dollars, this value would be
A) $575. 
B) $166. 
C) $160. 
D) $66.

Quizplus · Accepted Answer

Using the least squares method, we can find the fixed portion of maintenance costs by finding the y-intercept of the regression line. 
Using a calculator or computer, we can input the given data and find that the estimate of the fixed portion of maintenance costs is $160. Therefore, the answer is C ($160).

Figure 3-6 the Stanford Company Incurred the Following Maintenance Cost