Figure 3-12

question 157

Multiple Choice

Figure 3-12. The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received:
The driver used was the number of machine hours.
Refer to Figure 3-12.What was the cost formula for equipment maintenance?

• A)total maintenance cost = $25 ´ machine hours
• B)total maintenance cost = $32,000
• C)total maintenance cost = $32,000 + ($25 ´ machine hours)
• D)none of these are correct

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