Use the Following Data Set to Answer the Questions

question 27

Multiple Choice

Use the following data set to answer the Questions: $\begin{array} { | l | l | l | l | l | l | l | l | l } \hline \begin{array} { l } \text { Length of } \\\text { commute in } \\\text { miles } ( x ) \end{array} & 2 & 10 & 8 & 30 & 12 & 70 & 15 & 20 \\\hline \begin{array} { l } \text { Time of } \\\text { commute in } \\\text { minutes (y) }\end{array} & 5 & 25 & 20 & 45 & 25 & 80 & 30 & 35 \\\hline\end{array}$
-According to the regression equation, what is the expected length in minutes of a 0-mile commute?

• A) 0
• B) 10
• C) 12
• D) 20

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Definitions:

Automobile Manufacturing

The industry involved in the design, development, production, marketing, and selling of motor vehicles.

Sensitivity Analysis

A procedure for examining the repercussions that different magnitudes of an independent variable have on a dependent variable, within the context of predetermined assumptions.

Cash Break-Even

The amount of revenue necessary to cover all cash operating expenses, ignoring non-cash costs.

Fixed Costs

Expenses that do not change with changes in the volume of production or sales, such as rent, salaries, and insurance.