Question

The College of Business at Northeast College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the past thirteen months are shown below:

Month	Administrative Costs				Credit Hours
July		$	130,251		1,200
August			83,373		609
September			226,150		1,886
October			216,774		1,494
November			258,453		1,803
December			185,399		1,606
January			219,897		1,833
February			245,570		1,867
March			209,842		1,558
April			192,115		1,617
May			250,928		1,854
June			171,178		914
July			128,737		809
Total		$	2,518,667		19,050
Average		$	193,744		1,465

The controller's office has analyzed the data and has given you the results from the regression analysis:

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.9115513
R Square	0.830925708
Adjusted R Square	0.815555318
Standard Error	22,754.96587
Observations	13

ANOVA
	df	SS	MS	F	Significance F
Regression	1	27,991,726,133	27,991,726,133	-54.0601571	1.4436E-05
Residual	11	5,695,673,188	517,788,471.6
Total	12	33,687,399,321

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	33,100.32024	22,741.85454	1.45548025	0.17347479	-16,954.16413	83,154.8046	-16,954.16413	83,154.8046
X Variable 1	109.6253458	14.90981739	7.352561263	1.4436E-05	76.80905896	142.441633	76.80905896	142.441633

If the controller uses regression analysis to estimate costs, the estimate of the variable portion of administrative costs is:

Answer 1

Answer : Variable cost = $ 109.6253458 * Credit Hours

From the Regression out put varaible cost per Credit hour = $109.625 , Estimatation of the Variable Portion of the regeresion Analysis is $109.625 * Credti hours