Degen Company Used Least Squares Regression Analysis to Obtain the Following

question 103

Essay

Degen Company used least squares regression analysis to obtain the following output:
Payroll Department Cost
Explained by Number of Employees
$\begin{array}{lr}\text { Constant } & \$ 7,540 \\\text { Standard error of } Y \text { estimate } & 819 \\\mathrm{r}^{2} & 0.8924 \\\text { Number of obærvations } & 20 \\\text { X coefficient(s) } & \$ 2.473 \\\text { Standard error of coefficient(s) } & 0.0966\end{array}$ 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:

Functional Team

A group of individuals with specific roles and skills, assembled to perform specific tasks or achieve certain goals within an organization.

Similar Tasks

Tasks that are alike or closely resemble each other in terms of the skills required, processes involved, or the goals to be achieved.

Coordinate

To organize or align different elements in a system or activity so that they work together efficiently and effectively.

Cross-Functional Team

A group composed of members from different departments or areas of expertise working together towards a common goal, fostering innovation and collaboration.