Matt Helm Company Used Least- Squares Regression Analysis to Obtain

Essay

Matt Helm Company used least- squares regression analysis to obtain the following output: Payroll Dep artment Cost
Explained by Number of
Employees
$\begin{array}{ll}\text { Constant } & \$ 9,800 \\\text { Standard error of Y estimate } & \$ 630 \\\text { R - squared } & 0.9424 \\\text { No. of observations } & 20 \\\text { Degrees of freedom } & 18 \\\text { X coefficient(s) } & 3902 \\\text { Standard error of coefficient(s) } & 0.0966\end{array}$ a. What is the total fixed cost?
b. What is the variable cost per employee?
c. Prepare the linear cost function.
d. What is the coefficient of determination? Comment on the goodness of fit.