Chapter 10.2, Problem 31BSC

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 c.         Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs.   Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×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.) Part 2 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, b 0b0​, if appropriate. Choose the correct answer below.     A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars.   B. It is not appropriate to interpret b 0b0​, because its value…

Using the accompanying Home Market Value data and associated regression​ line, Market ValueMarket Valueequals=​$28,416+​$37.066×Square ​Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram.   LOADING... Click the icon to view the Home Market Value data.       Question content area bottom Part 1 Construct a frequency distribution of the​ errors, e Subscript iei.   ​(Type whole​ numbers.) Error Frequency minus−15 comma 00015,000less than< e Subscript iei less than or equals≤minus−10 comma 00010,000 0   minus−10 comma 00010,000less than< e Subscript iei less than or equals≤minus−50005000 5   minus−50005000less than< e Subscript iei less than or equals≤0 21   0less than< e Subscript iei less than or equals≤50005000 9…

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 c   Overhead Costs    Billable Hours345000    3000385000    4000410000    5000462000    6000530000    7000545000    8000