The Business School at Eastern College is accumulating data as a first step in t

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)

$239,430.

$240,760.

$179,620.

$190,062.

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:

Explanation / Answer

a) The regression equation is

administrative costs=89,132.11103 +100.9281446 *credit hours

the estimate of administrative costs in a month with 1,000 credit hours would be

=89,132.11103+(100.9281446 *1000) =$190,062 (approx)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.