Question: 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,
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 0 , if appropriate. Choose the correct answer below. A. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b 0 . B. The value of b 0 is the predicted billable hours for an overhead cost of 0 dollars. C. It is not appropriate to interpret b 0 , 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. D. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by b 0 . E. The value of b 0 is the predicted overhead costs for 0 billable hours. F. It is not appropriate to interpret b 0 , 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
