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An auditor used regression analysis to evaluate the relationship between utility costs and machine hours. The following information was developed using a computer software program:     Intercept 2,050 Standard error of estimate 200 Regression 0.825 Number of observations 36 Correlation coefficient 0.800     How much is the utility cost if the company’s 10 machines will use 2,400 hours next month? a. ₱3,830 b. ₱3,970 c. ₱4,030 d. ₱4,050

An auditor used regression analysis to evaluate the relationship between utility costs and machine hours. The following information was developed using a computer software program:     Intercept 2,050 Standard error of estimate 200 Regression 0.825 Number of observations 36 Correlation coefficient 0.800     How much is the utility cost if the company’s 10 machines will use 2,400 hours next month? a. ₱3,830 b. ₱3,970 c. ₱4,030 d. ₱4,050

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An auditor used regression analysis to evaluate the relationship between utility costs and
machine hours. The following information was developed using a computer software
program:  
 
Intercept 2,050
Standard error of estimate 200
Regression 0.825
Number of observations 36
Correlation coefficient 0.800  
 
How much is the utility cost if the company’s 10 machines will use 2,400 hours next month?

a. ₱3,830
b. ₱3,970
c. ₱4,030
d. ₱4,050
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