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?

DLH(X)

20

25

22

23

20

19

24

28

26

29

27

22

26

25

28

32

33

35

34

30

36

37

37

31

20

ILE(Y)

361

355

376

384

374

311

427.2

387.5

450.8

475.2

462.6

333.3

389.9

445

511

501.1

544.9

423.8

574.1

535.4

444.7

578.4

399.6

355

313

a. 543.54

b. 177.38

c. 544.45

d. 145.46