Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Fixed cost per term Variable cost per section $ 21,400 $ 1,345
Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Fixed cost per term Variable cost per section $ 21,400 $ 1,345
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ef 118.
![[The following information applies to the questions displayed below.]
Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In
reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101
over the last five terms:
Term
Fall, last year
Winter, last year
Summer, last year.
Fall, this year
Winter, this year.
Number of
Sections
Offered
4
Required 2A Required 2B
3
7
3752
Fixed cost per term
Variable cost per section
5
2
Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with
the course. He would like to have the variable and fixed costs separated for planning purposes.
Total Cost
$ 13,000
$ 7,500
2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.
2-b. Express these estimates in the form Y = a + bx.
$ 21,400
$ 1,345
$ 13,500
$ 10,000
$ 6,500
Complete this question by entering your answers in the tabs below.
Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance
101. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ffe4388-da54-45b7-9c19-31357d82b14c%2Fe53f14c7-3566-40b5-8278-ef24d79a9b59%2Fr7e5nerx_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In
reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101
over the last five terms:
Term
Fall, last year
Winter, last year
Summer, last year.
Fall, this year
Winter, this year.
Number of
Sections
Offered
4
Required 2A Required 2B
3
7
3752
Fixed cost per term
Variable cost per section
5
2
Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with
the course. He would like to have the variable and fixed costs separated for planning purposes.
Total Cost
$ 13,000
$ 7,500
2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.
2-b. Express these estimates in the form Y = a + bx.
$ 21,400
$ 1,345
$ 13,500
$ 10,000
$ 6,500
Complete this question by entering your answers in the tabs below.
Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance
101. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 2A Required 2B
Express these estimates in the form Y = a + bx. (Round your intermediate calculations and final answers to the nearest whole
dollar amount.)
Y= $ 21,400 + $ 556 X
< Required 2A
Required 2B
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