THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 128

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The model y = β₀ + β₁X₁ + β₂X₂ + ε was fitted to a sample of 25 families in order to explain household milk consumption: where y = Milk consumption,in quarts,per week,x₁ = Weekly income,in hundreds of dollars,and x₂ = Family size.The least squares estimates of the regression parameters were b₀ = -0.03,b₁ = 0.05,and b₂ = 1.1,with coefficient standard errors
= 0.02;
= 0.38.The total sum of squares and the error sum of squares were found to be 165.8 and 66.32 respectively.
-Is it possible to provide a meaningful interpretation of the estimate b₀?

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Definitions:

Budgeted Units

The quantity of products or services that an organization plans to produce or sell in a specific period according to its budget.

Static Budget

A fixed budget plan that does not change with actual levels of output or activity achieved during a period.

Patient-Visits

The number of times patients visit a healthcare provider or facility for services in a given period.

Total Variable Cost

The sum of all variable expenses that a company incurs in the process of producing goods or services.