The Data Below Are the Average One-Way Commute Times (In

question 3

Multiple Choice

The data below are the average one-way commute times (in minutes) for selected students and the number ofabsences for those students during the term. Find the equation of the regression line for the given data. Whatwould be the predicted number of absences if the commute time was 95 minutes? Is this a reasonable question?Round the predicted number of absences to the nearest whole number. Round the regression line values to thenearest hundredth. $\begin{array} { | l | c | c | c | c | c | c | c | c | c | } \text { Commute time } ( \mathrm { min } ) , \mathrm { x } & 72 & 85 & 91 & 90 & 88 & 98 & 75 & 100 & 80 \\\hline \text { Number of absences, } \mathrm { y } & 3 & 7 & 10 & 10 & 8 & 15 & 4 & 15 & 5\end{array}$

• A) \(\hat { y } = 0.45 \mathrm { x } - 30.27 ; 12\) absences; \(Y e s\), it is reasonable.
• B)\(\hat { y } = 0.45 \mathrm { x } - 30.27 ; 12\) absences; No, it is not reasonable. 95 minutes is well outside the scope of the model.
• C) \(\hat { y } = 0.45 \mathrm { x } + 30.27 ; 73\) absences; Yes, it is reasonable.
• D) \(\hat { y } = 0.45 \mathrm { x } + 30.27 ; 73\) absences; No, it is not reasonable. 95 minutes is well outside the scope of the model.

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Definitions:

Planning Horizons

The timeframe over which strategic planning and decision-making processes are projected and analyzed, ranging from short to long term.

Relevant Range

The span of activity levels within which certain cost assumptions and behaviors are considered valid and accurate for management decisions.

Relevant Range

The scope of operations in which the premises regarding the behavior of variable and fixed costs hold true.

Cost Formula

An equation or method used to predict the cost associated with a certain level of activity or production volume.