The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through cClick the icon to view the monthly data.a. Develop a simple linear regression model between billable hours and overhead costs.Overhead Costs = 247733.3 +(43.2000) x Billable Hours(Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.)b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm?Interpret the fixed term, bo. if appropriate. Choose the correct answer below.OA. The value of by is the predicted overhead costs for 0 billable hours.OB. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by boOC. It is not appropriate to interpret by. because its value is the predicted billable hours for overhead costs of 0 dollars, but the fim cannot have overhead costs of 0 dollars associated with a clientD. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm.OE. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by bo-OF. The value of bo is the predicted billable hours for an overhead cost of 0 dollars.Interpret the coefficient of billable hours, b,, if appropriate. Choose the correct answer below.A. The value of b, is the predicted billable hours for an overhead cost of 0 dollars.OB. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm.OC. The value of by is the predicted overhead costs for 0 billable hours.OD. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by b₁.OE It is not appropriate to interpret by, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client.F. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b₁-c. If a special job was available requiring 6,500 billable hours that would contribute a margin of $210,000 before overhead, would the job be attractive?Since the predicted overhead costs of a client with 6,500 billable hours would be $which is(Round to the nearest dollar as needed.)the margin of $210,000 before overhead, the jobbe attractiveMonthly Overhead Costs and Billable Hours DataOverhead Costs$385,000Billable Hours 83,000$425,0004,000$445,0005,000$497,0006,000$570,0007,000$500,0008,000PrintDone

The monthly overhead cost and billable hours data are shown as follows.Overhead CostBillable…

The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through a Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs 247733.3 + (43.2000) x Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) b. Interpret the coefficients of your regression model. Specifically, what does the foxed component of the model mean to the consulting firm? Interpret the foxed term, by. if appropriate. Choose the correct answer below. OA. The value of by is the predicted overhead costs for 0 billable hours. OB. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo OC. It is not appropriate to interpret by, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. D. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. OE. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by bo OF. The value of b, is the predicted billable hours for an overhead cost of 0 dollars. Interpret the coefficient of billable hours, by, if appropriate. Choose the correct answer below. A. The value of b, is the predicted billable hours for an overhead cost of 0 dollars OB. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. OC. The value of by is the predicted overhead costs for 0 billable hours. OD. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by b₁ OE It is not appropriate to interpret by, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. F. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by by c. If a special job was available requiring 6.500 billable hours that would contribute a margin of $210,000 before overhead, would the job be attractive? Since the predicted overhead costs of a client with 6,500 billable hours would be $which is (Round to the nearest dollar as needed.) the margin of $210,000 before overhead. head, the job be attractive Monthly Overhead Costs and Billable Hours Data Overhead Costs Billable Hours $385,000 3,000 $425,000 4,000 $445,000 5,000 $497,000 6,000 $570,000 7,000 $500,000 8,000 Print Done