The H.W. Grant Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,675 Standard error of Y estimate $3,500 0.7776 Number of observations 16 X coefficient(s) 10.25 Standard error of coefficient(s) 2.195 What is the cost estimation equation? O A. Y= $12,175 + $10.25X O B. Y= $3,500 + $7.97X O C. Y= $19,175 + $4.67X O D. Y= $15,675 + $10.25X
The H.W. Grant Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,675 Standard error of Y estimate $3,500 0.7776 Number of observations 16 X coefficient(s) 10.25 Standard error of coefficient(s) 2.195 What is the cost estimation equation? O A. Y= $12,175 + $10.25X O B. Y= $3,500 + $7.97X O C. Y= $19,175 + $4.67X O D. Y= $15,675 + $10.25X
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![The H.W. Grant Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows:
Indirect Materials Cost Explained by Units Produced
Constant
$15,675
Standard error of Y estimate
$3,500
0.7776
Number of observations
16
X coefficient(s)
10.25
Standard error of coefficient(s)
2.195
What is the cost estimation equation?
O A. Y= $12,175 + $10.25X
O B. Y= $3,500 + $7.97X
O C. Y= $19,175 + $4.67X
O D. Y= $15,675 + $10.25X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7b40a41-3ef4-4ce0-8815-6254b6673f01%2Fc818ba58-4d43-4092-a0d7-e6f7392b9744%2Flq3t0cm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The H.W. Grant Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows:
Indirect Materials Cost Explained by Units Produced
Constant
$15,675
Standard error of Y estimate
$3,500
0.7776
Number of observations
16
X coefficient(s)
10.25
Standard error of coefficient(s)
2.195
What is the cost estimation equation?
O A. Y= $12,175 + $10.25X
O B. Y= $3,500 + $7.97X
O C. Y= $19,175 + $4.67X
O D. Y= $15,675 + $10.25X
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