Multiple Choice
The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance for the Regina Company. The following computer output was received:
The driver used was the number of machine hours.
-Refer to the Figure.What was the cost formula for equipment maintenance?
A) total maintenance cost = $25 × machine hours
B) total maintenance cost = $32,000
C) total maintenance cost = $32,000 + ($25 × machine hours)
D) total maintenance cost = $25 + ($32,000 × machine hours)
Correct Answer:

Verified
Correct Answer:
Verified
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