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:MonthAdministrative Costs Credit HoursJuly $129,301 250 August  82,613 115 September  225,580 1,392 October  216,394 1,000 November  258,263 1,309 December  184,449 1,112 January  219,137 1,339 February  245,000 1,373 March  209,462 1,064 April  191,925 1,123 May  249,978 1,360 June  170,418 420 July  128,167 315 Total $2,510,687 12,172 Average $193,130 936 The controller's office has analyzed the data and

has given you the results from the regression analysis:SUMMARY OUTPUTRegression StatisticsMultiple R0.9317157R Square0.868094147Adjusted R Square0.856102705Standard Error20,134.92395Observations13ANOVA      dfSSMSFSignificance FRegression129,349,143,51429,349,143,51472.39281173.61909E-06Residual114,459,566,787405,415,162.4  Total1233,808,710,301    CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept96,647.0239812,641.665397.645118031.00291E-0568,822.90608124,471.141968,822.90608124,471.1419X Variable 1103.060769712.112831038.5083965413.61909E-0676.40060833129.72093176.40060833129.720931If the controller uses regression analysis to estimate costs, the estimate of the variable portion of administrative costs is:  

A. Variable Costs = $11.99 × Credit hours.
B. Variable Costs = $0.87 × Credit hours.
C. Variable Costs = $103.06 × Credit hours.
D. Variable Costs = $8.63 × Credit hours.


Answer: C

Business

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