The Stanford Company Incurred the Following Maintenance Cost During a Five

question 12

Multiple Choice

The Stanford Company incurred the following maintenance cost during a five month period: $\begin{array}{ccc}\text { Month } & \text { Production Volume } & \text {Maintenance Costs }\\\hline\text { June } & 75 & \$ 250 \\\text { July } & 115 & 310 \\\text { August } & 190 & 400 \\\text { September } & 60 & 240 \\\text { October } & 135 & 355\end{array}$
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

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Definitions:

Beta Distribution

A continuous probability distribution characterized by two shape parameters, used in project planning and Bayesian statistics for modeling variable events.

Cost Estimates

The anticipated expenses involved in completing a project or producing a product, often used for budgeting and planning purposes.

Scheduling

The process of organizing, planning, and allocating resources to tasks over time to achieve efficiency and meet specific objectives, often in production, project management, or service operations.

ES (Earliest Start)

The earliest point in time at which a task, project, or activity can begin, taking into account the completion of preceding tasks and any necessary waiting periods.