Exam 5: Least-Squares Regression Computations

The management of Smoots Corporation would like for you to analyze their repair costs,which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method,the estimates of the variable and fixed components of repair cost would be closest to:

Meleski Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours. April................... May.................... June................... July.................... August............... September.......... October.............. November........... Machine-Hours Utility Costs 3,546 \ 16,979 3,539 \ 16,954 3,554 \ 16,980 3,516 \ 16,850 3,536 \ 16,955 3,578 \ 17,065 3,551 \ 16,994 3,556 \ 17,023 -Using the least-squares regression method,the estimate of the fixed component of utility cost per month is closest to: