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The Business School at Eastern College is collecting data as afirst step in the preparation of next year's budget. One cost thatis being looked at closely is administrative staff as a function ofstudent credit hours. Data on administrative costs and credit hoursfor the most recent 13 months follow.

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	$	2,513,867				12,172
Average	$	193,374				936

The controller's office has analyzed the data and given you theresults from the regression analysis, as follows.

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.93339145
R Square	0.871219590
Adjusted R Square	0.859512280
Standard Error	19954.56760
Observations	13

ANOVA

	df	SS	MS	F	Significance F
Regression	1	29631603873.00	29631603873.00	74.4200000	0.0000032
Residual	11	4380032428	398184766
Total	12	34011636301.00

	Coefficients	Standard Error	T Stat	P-value	Lower 95%	Upper 95%
Intercept	96414.557	12528.42904	7.69566211	0.0000094	68839.6563	123989.4569
Credit Hours	103.5555179	12.0043317	8.62651257	0.0000032	77.1341487	129.9768871

Required:

a. In the standard regression equationy = a + bx, the letter b isbest described as the:

• Constant coefficient

• Correlation coefficient

• Dependent variable

• Independent variable

• Variable cost coefficient

b. In the standard regression equationy = a + bx, the letter y isbest described as the:

• Constant coefficient

• Correlation coefficient

• Dependent variable

• Independent variable

• Variable cost coefficient

c. In the standard regression equationy = a + bx, the letter x isbest described as the:

• Constant coefficient

• Correlation coefficient

• Dependent variable

• Independent variable

• Variable cost coefficient

d. If the controller uses the high-low methodto estimate costs, the cost equation for administrative costs is:(Do not round your intermediate calculations.)

• Cost = $69,468 + ($114 × Credit hours)

• Cost = $67,313 + ($133 × Credit hours)

• Cost = $193,374.00 × Credit hours

• Cost = $207

• Some other equation

e. Based on the results of the controller'sregression analysis, the estimate of administrative costs in amonth with 1,000 credit hours would be: (Round yourintermediate calculations to 2 decimals.)

• 198,808

• 201,000

• 96,409

• 199,975

• Some other amount

f. The correlation coefficient (rounded) forthe regression equation for administrative costs is:

• 0.871

• 0.933

• 0.859

• 0.966

• Some other amount

g. The percent of the total variance (rounded)that can be explained by the regression is:

• 93.3

• 87.1

• 85.9

• 96.6

• Some other amount