Newton Company Used 'Least Squares Regression Analysis' to Obtain the Following

Essay

Newton Company used 'least squares regression analysis' to obtain the following output:
Payroll Department Cost
Explained by Number of Emplo vees
$\begin{array}{lr}\text { Constant } & \$ 5800 \\\text { Standard error of Y estimate } & 630 \\\mathrm{r}^{2} & 0.8924 \\\text { Number of observations } & 20 \\& \\X \text { coefficient(s) } & \$ 1.902 \\\text { Standard error of coefficient(s) } & 0.0966\end{array}$
Required:
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.
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