(Appendix 5A) Recent Maintenance Costs of Divers Corporation Are Listed

question 32

Multiple Choice

(Appendix 5A) Recent maintenance costs of Divers Corporation are listed below:
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of maintenance cost per machine-hour is closest to:

• A) $9.76
• B) $6.00
• C) $4.43
• D) $4.57

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Definitions:

Y-Intercept

The point where a line crosses the Y-axis in a graph or chart.

Pearson r

A statistical coefficient expressing the linear correlation between two variables, ranging from -1 to +1.

Feelings of Safety at Night

An individual's perceived sense of security and well-being in public or private settings during nighttime.

Regression Equation

A mathematical formula used to predict a dependent variable based on one or more independent variables, typically in the form of Y = a + bX.