e managing director of a consulting group has the Click the icon to view the monthly data. Develop a simple linear regression model between billable hours and overhead costs. werhead Costs=105.790.5+ (47.3714) xBillable Hours ound 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) Interpret the coefficients of your regression model. Specifically, what does the foxed component of the model mean to the consulting firm? terpret the fixed term, bo, if appropriate. Choose the correct answer below. OA. The value of by is the predicted overhead costs for 0 billable hours B. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by bg- C. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. OD. The value of by is the predicted billable hours for an overhead cost of 0 dollars OE. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo OF. It is not appropriate to interpret by. because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. terpret the coefficient of billable hours, by, if appropriate. Choose the correct answer below A. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b,. B. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. C. It is not appropriate to interpret by, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client OD. The value of by is the predicted billable hours for an overhead cost of 0 dollars. OE. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by b₁. Monthly Overhead Costs and Billable Hours Data Overhead Costs $315,000 Billable Hours 0 3,000 $360,000 4,000 $385,000 5,000 $438,000 6,000 $520,000 7,000 $540,000 8,000 Print Done

e managing director of a consulting group has the Click the icon to view the monthly data. Develop a simple linear regression model between billable hours and overhead costs. werhead Costs=105.790.5+ (47.3714) xBillable Hours ound 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) Interpret the coefficients of your regression model. Specifically, what does the foxed component of the model mean to the consulting firm? terpret the fixed term, bo, if appropriate. Choose the correct answer below. OA. The value of by is the predicted overhead costs for 0 billable hours B. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by bg- C. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. OD. The value of by is the predicted billable hours for an overhead cost of 0 dollars OE. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo OF. It is not appropriate to interpret by. because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. terpret the coefficient of billable hours, by, if appropriate. Choose the correct answer below A. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b,. B. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. C. It is not appropriate to interpret by, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client OD. The value of by is the predicted billable hours for an overhead cost of 0 dollars. OE. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by b₁. Monthly Overhead Costs and Billable Hours Data Overhead Costs $315,000 Billable Hours 0 3,000 $360,000 4,000 $385,000 5,000 $438,000 6,000 $520,000 7,000 $540,000 8,000 Print Done

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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