The Paige Company wants to develop a cost equation to determine its total electricity cost for a
Fantastic news! We've Found the answer you've been seeking!
Question:
The Paige Company wants to develop a cost equation to determine its total electricity cost for a given month. It has determined that kilowatt hours used is the best predictor of electricity cost. It has collected the following data for the months of January through August of the current year to help in developing the cost equation.
PAIGE COMPANY
DATA FOR ESTIMATING ELECTRICITY COST
Month Electricity Cost Kilowatt Hours Used
January $
February
March
April
May
June
July
August
After running the data through regression analysis, the following output results were obtained.
PAIGE COMPANY
DATA FOR ESTIMATING ELECTRICITY COST
OUTPUT FROM REGRESSION ANALYSIS
Intercept
b coefficient
R squared
Using the highlow method for cost estimation, what is the cost equation that the company should use to estimate electricity cost?
Question options:
Electricity Cost $$ x Kilowatt Hours Used
Electricity Cost $$ x Kilowatt Hours Used
Electricity Cost $$ x Kilowatt Hours Used
Electricity Cost $ $ x Kilowatt Hours Used
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date: