Thane Company Is Interested in Establishing the Relationship Between Electricity

question 119

Multiple Choice

Thane Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow: $$\begin{array} { | l | r | r | } \hline \text { Month } & \text { Machine Hours } & \text { Electricity Costs } \\\hline \text { January } & 2,500 & 18,400 \\\hline \text { February } & 2,900 & 21,000 \\\hline \text { March } & 1,900 & 13,500 \\\hline \text { April } & 3,100 & 23,000 \\\hline \text { May } & 3,800 & 28,250 \\\hline \text { June } & 3,300 & 22,000 \\\hline \text { Juby } & 4,100 & 24,750 \\\hline \text { August } & 3,500 & 22,750 \\\hline \text { September } & 2,000 & 15,500 \\\hline \text { October } & 3,700 & 26,000 \\\hline \text { November } & 4,700 & 31,000 \\\hline \text { December } & 4,200 & 27,750 \\\hline\end{array}$$

If the controller uses regression analysis to estimate costs,the estimate of the fixed portion of electricity cost is:

• A) Cost = $5.77.
• B) Cost = $1,682.82.
• C) Cost = $1,425.18.
• D) Cost = $3,726.88

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Definitions:

Standardize

The process of establishing and implementing technical standards to ensure consistency and compatibility across systems, products, or services.

Expectations

The beliefs or assumptions about what should happen in the future regarding the performance or outcomes of a project.

Critical Path

The sequence of tasks that determines the minimum project duration; delaying any task on this path delays the whole project.

Project Duration

The total period from the start to the completion of a project.