Answered: Develop a simple linear regression…

Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs=enter your response here +enter your response here ×Billable Hours

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....

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Part 1

a. Develop a simple linear regression model between billable hours and overhead costs.

Overhead

Costs=enter your response here

+enter your response here

×Billable

Hours

(Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.)

Overhead Costs Billable Hours
385000 3000
430000 4000
460000 5000
511000 6000
580000 7000
600000 8000

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