Question: The Business School at Eastern College is accumulating data as a first step in the preparation of next year's budget development. One cost that is
The Business School at Eastern College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the most recent academic year is shown below:
Month Administrative Costs Credit Hours
July $129,301 250
August 82,613 115
September 228,580 1,392
October 216,394 1,000
November 258,263 1,309
December 184,449 1,112
January 219,137 1,339
February 245,000 1,373
March 209,642 1,064
April 191,925 1,123
May 249,978 1,360
June 170,418 420
July 128,167 315
Total $2,385,700 11,857
Average $198,808 988
The controller's office has analyzed the data and has given you the results from the regression analysis:
SUMMARY OUTPUT Regression Statistics Multiple R 0.93346722 R Square 0.87136104 Adjusted R Square 0.85966659 Standard Error 19943.5805 Observations 13 ANOVA df SS MS F Significance F Regression 1 29636340628 2.96363E+10 74.5106436 3.14788E-06 Residual 11 4375210454 397746405 Total 12 34011551082 Coefficients Standard Error t-Stat P-value Lower 95% Upper 95% Lower Upper 95.0% 95.0% Intercept $96,409.42 12521.26261 7.69965611 9.381E-06 68850.28899 123968.543 68850.289 123968.543 Credit Hours $103.56 11.9974027 8.63 19548 3.1479E-06 77.15491912 129.967156 77. 1549191 129.967 156
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