The Lindsey Company Used Regression Analysis to Predict the Annual

Multiple Choice

The Lindsey Company used regression analysis to predict the annual cost of utilities.The results were as follows:
$\begin{array}{ll}&\text { Utilities Cost }\\&\text { Explained by Direct Labor Hours }\\\text { Constant } & 5,000 \\\text { Standard error of } Y \text { estimate } & 595 \\\text { R-Squared } & 0.87 \\\text { No. of observations } & 30 \\\text { Degrees of freedom } & 28 \\\text { X Coefficient } & 4.02 \\\text { Standarderror of coefficient } & 0.81\end{array}$
The linear cost function is ________ where Y = Total utilities cost and X = Number of direct labor hours.

A) Y = $5,000 + $0.87X
B) Y = $5,000 + $0.81X
C) Y = $595 + $0.81X
D) Y = $5,000 + $4.02X