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Toronto Company Makes Cell Phones  Intercept 2,225 X Variable 1 9.75\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}

question 167

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Toronto Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.Coefficients shown by a regression program are:
 Electricity  Machine  Month  cost  hours  May $7,560570 June 8,220625 July 7,480546 August 7,186518\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\\text { Month } & \text { cost } & \text { hours }\\\text { May } & \$ 7,560 & 570 \\\text { June } & 8,220 & 625 \\\text { July } & 7,480 & 546 \\\text { August } & 7,186 & 518\end{array}  Intercept 2,225 X Variable 1 9.75\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}
-Refer to the Figure.What is the fixed cost of electricity when using the results of regression?

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Definitions:

Fair Insurance Policy

An insurance contract that is considered equitable, offering reasonable terms, coverage, and protection for all parties involved.

Premium

The amount paid for an insurance policy or the difference above the nominal or face value of a security.

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.

Insurance Policy

A contractual agreement between an individual or entity and an insurance company, outlining the terms for the insurer to compensate the insured for specific losses in exchange for premiums paid.

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