A company want to find out if there is a linear relationship between indirect labor expense (ILE), in dollars, and

direct labor hours (DLH). Data for direct labor hours and indirect labor expense for 25 months are given.

Using the estimated regression equation found by using DLH as the predictor variable, find a point estimate for Indirect Labor Expense usage when the Direct Labor Hours is 40?

Please see attached Excel for data.

Answer Options:

a. 543.54

b. 145.46

c. 177.38

d. 544.45

EXCEL data

DLH(X) ILE(Y)

20 361

25 355

22 376

23 384

20 374

19 311

24 427.2

28 387.5

26 450.8

29 475.2

27 462.6

22 333.3

26 389.9

25 445

28 511

32 501.1

33 544.9

35 423.8

34 574.1

30 535.4

36 444.7

37 578.4

37 399.6

31 355

20 313