An Air Conditioning and Heating Repair Firm Conducted a Study

question 44

Multiple Choice

An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas.The resulting regression equation was: Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature.If the temperature averaged 48 degrees during December, what is the forecasted cost of December's electric bill?

• A)^$179.19
• B)$227.19
• C)$157.59
• D)$69.60

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Definitions:

Intra-Entity Gross Profit

The profit realized from transactions that occur within different parts of the same company, often eliminated during consolidation to prevent overstated financial performance.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, helping in the elimination of intercompany transactions and balances.

Intra-Entity Transfer

A transaction or movement of assets, liabilities, or related items within the same organization, rather than with external entities.

Depreciation Expense

Distributing the expense of a physical asset across its lifespan to represent its diminishing value over the years.