Need Help with Question 3.The Requireds go with question 3, this also ties into my studying for the final.

supplies (2) Assume the assumptions identified in Requirement 1 are satisfied for the indire expense of the Connecticut Electronics Company (a) Explain the meaning of "200" and "4" in the regression equation S $200 $4H b) calculate the estimated cost of indirect supplies if 900 machine-hours are to be used during a month. (3) Explain briefly what the (a) Coefficient of correlation measures; (b) value of the coefficient of correlation (r .87) indicates in this case if Connecticut Electronics Company wishes to predict the total cost of indirect supplies on the basis of estimated hours. 3. Pacific Lumber processes lumber products for sale to lumber wholesalers. Its most popular line is oak products. Oak tree growers sell Pacific Lumber whole trees. These trees are jointly processed up to the splitoff point at which raw select oak, raw white oak, and raw knotty oak become separable products. Each raw product is then separately further processed by Pacific Lumber into finished products (select oak, white oak, and knotty oak) that are sold to lumber wholesalers. Data for August 2015 are: a. Joint processing costs (including cost of oak trees) S300,000 b. separable product at splitoff point Raw select oak, 30,000 board- feet Raw white oak, 50,000 board feet Raw knotty oak, 20,000 board-feet c. Final product produced and sold Select oak, 25,000 board feet at $16 per board-foot White oak, 40,000 board feet at $9 per board-foot Knotty oak, 15,000 board feet at $7 per board-foot d. separable processing costs For select oak, $60,000 For white oak, $90,000 For knotty oak, $15,000 There is an active market for raw oak products. Selling prices available in August 2015 were raw select oak, 8 per board-foot; raw white oak, $4 per board-foot; and raw knotty oak, $3 per board-foot, There were no beginning or ending inventories for August 2015