Newton Company Used 'Least Squares Regression Analysis' to Obtain the Following

question 100

Essay

Newton Company used 'least squares regression analysis' to obtain the following output:
Payroll Department Cost
Explained by Number of Emplo vees
$\begin{array}{lr}\text { Constant } & \$ 5800 \\\text { Standard error of Y estimate } & 630 \\\mathrm{r}^{2} & 0.8924 \\\text { Number of observations } & 20 \\& \\X \text { coefficient(s) } & \$ 1.902 \\\text { Standard error of coefficient(s) } & 0.0966\end{array}$
Required:
a.What is the total fixed cost?
b.What is the variable cost per employee?
c.Prepare the linear cost function.
d.What is the coefficient of determination? Comment on the goodness of fit.
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Definitions:

Subjective Norms

Individual perceptions of social pressure to perform or not perform a particular behavior, which can influence their actions.

Health Benefits

Positive effects on physical and/or mental well-being obtained through activities, foods, practices, or medical treatments.

Transtheoretical Model

A model of behavior change that assesses an individual's readiness to act on a new healthier behavior and provides strategies to guide the individual through the stages of change to achieve it.

Precontemplation

The stage of change in which individuals do not yet recognize that they have a problem or need to change.