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George's Ice Cream Shop Believes Most of Its Utilities Costs

Question 86

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George's Ice Cream Shop believes most of its utilities costs are mixed.George has collected the following data on gallons of ice cream used and related utilities' costs for the past six months:
 Number of  gallons used  Utilities cost  May 20$700 June 30850 July 401100 August 30975 September 25900 October 22720\begin{array}{lcc} & \begin{array}{c}\text { Number of } \\\text { gallons used }\end{array} & \text { Utilities cost } \\\hline \text { May } & 20 & \$ 700 \\\text { June } & 30 & 850 \\\text { July } & 40 & 1100 \\\text { August } & 30 & 975 \\\text { September } & 25 & 900 \\\text { October } & 22 & 720\end{array}
George has run a regression analysis on the above information and has come up with the following data:
 Coefficients  Intercept 374.4318 X Variable 1 18.29545\begin{array}{lc} &{\text { Coefficients }} \\\hline \text { Intercept } & 374.4318 \\\text { X Variable 1 } & 18.29545 \\\hline\end{array}
Comparing the high/low method to regression analysis,to the nearest dollar,which of the following formulas would be the best predictor of total estimated mixed costs?


A) Y = $300 + $20x
B) Y = $374 + $18x
C) Y = $900 + $30x
D) Y = $18 + $374x

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