Question

Clarke Central's class of 2001 is currently planning its 20-year class reunion. In estimating costs for the 20-vear reunion, the planning committee compiled the number of people in attendance and related total costs for each previous class reunion held. The data was then entered in a spreadsheet program and regression analysis was performed the analysis resulted in the following cost behavior equation: y=56x+800 and indicated that 95% of the variability in total costs could be explained by the number of people in attendance. Which of the following statements is incorrect if the planning committee's best estimate is that 200 people will attend the 20-year reunion, and the committee expects all costs to be covered by the people in attendance? O A. Assuming the estimate is realistic, the minimum price that should be charged per person is $60 OB. The x variable coefficient is 56, and the intercept coefficient is 800 OC. It is likely that an outlier exists in the data used to perform the regression a OD. If the estimate is correct, the total fixed costs will be $800. O E. The best estimate of total costs for the 20-year reunion is $12,000

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