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In order to analyze total costs as a function of machine hours, Rupper Company developed a simple regression model. The model was based on 60
In order to analyze total costs as a function of machine hours, Rupper Company developed a simple regression model. The model was based on 60 monthly observations of costs and machine hours and had a r squared of .90. The model was:
Costs = 14.3 A + $161,330 where A is machine hours
If Ruppers machine hours cost for next month is projected to be 16,000 they should expect total costs to be closest to:
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