Thul Company Is Interested in Establishing the Relationship Between Electricity

question 16

Multiple Choice

Thul 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: 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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