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 method of least squares, the fixed portion estimate is the y-intercept of the regression line. Running the calculations, we get a y-intercept of $160.

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