Jorgensen Company Used Least Squares Regression Analysis to Obtain the Following

question 26

Essay

Jorgensen Company used least squares regression analysis to obtain the following output:
Mainterance Department Cost
Explained by Number of Labor Hours
$\begin{array}{ll}\text { Constant } & 8,200 \\\text { Standard error of } Y \text { estimate } & 630 \\\mathrm{R}^{2} & 0.94 \\\text { No. of observations } & 20 \\\text { Degrees of freedom } & 18 \\\text { X coefficient } & 2.21\\\text { Standard error of coefficient }&0.0966\end{array}$
Required:
A) What is the total fixed cost of the maintenance department?
B) What is the variable cost per labor hour for the maintenance department?
C) What is the linear cost function?
D) What is the coefficient of determination? Comment on the goodness of fit.