Mimi’s Dance Studio estimates studio (noninstruction) costs based on student hours of instruction, where | student receiving a private lesson for 1 hour is “1 student hour.” Data were gathered for the past 24 months and entered into a regression program. The following output was obtained:

SUMMARY OUTPUT Dependent variable = Studio costs Regression Statistics ——_ }

R-square aa 609 Low ;

Standard error 612.0926 Observations 24 Independent Variable Coefficients Intercept 1,451.784 Student hours SESS The company is planning to operate at a level of 250 student instruction hours per month during the 7 —I—————— coming year.

Required ayes

a. Use the regression output to write the cost equation. / US ROS: Y +257 K%

b. Based on the cost equation, compute the Se eg