Leno Company Used Regression Analysis to Predict the Annual Cost

question 64

Multiple Choice

Leno Company used regression analysis to predict the annual cost of indirect materials.The results were as follows:
$\begin{array}{ll}&\text { Indirect Materials Cost }\\&\text { Explained by Units Produced }\\\text { Constant } & 14,885 \\\text { Standard error of } Y \text { estimate } & 9,960 \\\text { R-Squared } & 0.7832 \\\text { No. of observations } & 22 \\\text { Degrees of freedom } & 20 \\\text { X Coefficient } & 11.75 \\\text { Standarderror of coefficient } & 2.1876\end{array}$
The linear cost function is ________ where Y = Total indirect materials cost and X = Number of units produced.

• A) Y = $2.1876 + $9,960X
• B) Y = $11.75 + $14,885X
• C) Y= $9,960 + $14,885X
• D) Y = $14,885 + 11.75X

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Definitions:

Express Breach

A clear and definitive violation of a contract's terms, explicitly stated within the agreement.

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The legal principle requiring a party suffering loss to take reasonable action to minimize the amount of the loss.

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The termination of an employee's contract of employment in violation of the contract or statutory law.