Reference no: EM131802655
Question - The Business School at Eastern College is collecting data as a first step in the preparation of next year's budget. One cost that is being looked at closely is administrative staff as a function of student credit hours. Data on administrative costs and credit hours for the most recent 13 months follow:
Month Administrative Costs Credit Hours
July $ 125,953 325
August 86,303 283
September 236,059 1,518
October 223,713 1,594
November 265,023 1,768
December 190,361 1,634
January 227,740 2,032
February 258,198 3,224
March 215,337 2,363
April 197,854 1,594
May 257,147 1,969
June 173,912 816
July 131,102 546
Total $ 2,588,702 19,666
Average $ 199,131 1,513
The controller's office has analyzed the data and given you the results from the regression analysis:
SUMMARY OUTPUT
Regression Statistics
Multiple R .85033134
R Square .723063380
Adjusted R Square .697887320
Standard Error 30797.13940
Observations 13
ANOVA
df SS MS F Significance F
Regression 1 27240145578.00 27240145578.00 28.7200000 .0002306
Residual 11 10433101755 948463796
Total 12 37673247333.00
Coefficients Standard Error T Stat P-value Lower 95% Upper 95%
Intercept 113819.574 18065.69825 6.30031416 .0000583 74057.2206 153581.9284
Credit Hours 56.3941590 10.5230054 5.35913051 .0002306 33.2331687 79.5551494
Based on the results of the controller's regression analysis, the estimate of administrative costs in a month with 1,090 credit hours would be (Round Intercept and Slope values to 2 decimal places and final answer to nearest dollar amount.)