The finance director at Ubuntu University of Science andTechnology is concerned about the overhead costs at her university.Cost pressures are severe and so controlling and reducing overheadsis very important. The director believes overhead costs incurredare generally a function of the number of different academicprogrammes, and the number of enrolled students. The following datahas since been collected for analysis:
| year | Overhead
Costs | Number of Academic
Programmes | Number of Enrolled
Students |
| 1 | $13 500 | 29 | 3 400 |
| 2 | 19 200 | 36 | 5 000 |
| 3 | 16 800 | 49 | 2 600 |
| 4 | 20 100 | 53 | 4 700 |
| 5 | 19 500 | 54 | 3 900 |
| 6 | 23 100 | 58 | 4 900 |
| 7 | 23 700 | 88 | 5 700 |
| 8 | 20100 | 72 | 3 900 |
| 9 | 22 800 | 83 | 3 500 |
| 10 | 29 700 | 73 | 3 700 |
| 11 | 31 200 | 101 | 5 600 |
| 12 | 38100 | 103 | 7 600 |
Required
a) Using the above data, estimate the regression line
. b) Calculate the coefficient of determination.
c) What insights do the analyses provide about controlling andreducing overhead costs at the university?
