The Rumler Company Used Regression Analysis to Predict the Annual

question 101

Multiple Choice

The Rumler Company used regression analysis to predict the annual cost of utilities.The results were as follows:
$\begin{array}{ll}&\text { Utilities Cost }\\&\text { Explained by Direct Labor Hours }\\\text { Constant } & 4,500 \\\text { Standard error of } Y \text { estimate } & 595 \\\text { R-Squared } & 0.87 \\\text { No. of observations } & 30 \\\text { Degrees of freedom } & 28 \\\text { X Coefficient } & 5.04 \\\text { Standard error fofficient } & 0.92\end{array}$
The total fixed cost is ________.

• A) $5.04 times number of direct labor hours
• B) $595
• C) $4,500
• D) none of the above

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Definitions:

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