Victoria Is a Budget Analyst at Young Industries

Multiple Choice

Victoria is a budget analyst at Young Industries. She used the least squares regression method to separate the plant's monthly utilities cost into its fixed and variable components. The results were as follows: Y = 3,250 + .054 X
X = the number of units produced
R² = .892
Which of the following statements is not true about Victoria's cost model?

A) Y represents the total semi-variable cost.
B) The total monthly fixed utilities costs are $3,250.
C) X is referred to as the dependent variable.
D) The equation Y = 3,250 + .054 X would be represented as a straight line on a graph.