Jordan's Gym is located in a popular vacation spot with much higher demand in the summer than in the winter. The gym has both annual memberships and individual visit prices, which makes it a popular alternative for seasonal visitors. The owner of the gym is interested in developing a budget for the coming year and would like to predict the operating costs of the gym. The accountant for the gym has compiled data on gym operating costs and gym visits, which the accountant believes is the best predictor of operating costs. The data are presented in the accompanying table and a simple regression analysis follows.

Month	Gym Visits	Operating Costs
January	828	$ 11,270
February	840	17,640
March	3,736	25,170
April	3,360	29,530
May	4,398	35,250
June	4,499	29,910
July	4,628	31,220
August	4,612	33,440
September	3,574	28,610
October	3,772	26,190
November	1,411	23,260
December	1,059	17,490

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.91424491
R Square	0.83584376
Adjusted R Square	0.81942813
Standard Error	3057.51245
Observations	12

ANOVA

	df	SS	MS	F	Significance F
Regression	1	475996943.1	475996943	50.9176	3.1582E-05
Residual	10	93483823.59	9348382.4
Total	11	569480766.7

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	12824.3478	2014.800228	6.3650717	8.2E-05	8335.09318	17313.6025
Gym Visits	4.22386976	0.591938612	7.1356551	3.2E-05	2.90494834	5.54279118

Required:

In the standard regression equation y = a + bx, the letter b is best described as the:

multiple choice 1

Independent variable.

Dependent variable.

Constant coefficient.

Correlation coefficient.

Variable cost coefficient.

In the standard regression equation y = a + bx, the letter y is best described as the:

multiple choice 2

Independent variable.

Correlation coefficient.

Constant coefficient.

Variable cost coefficient.

Dependent variable.

In the standard regression equation y = a + bx, the letter x is best described as the:

multiple choice 3

Independent variable.

Dependent variable.

Constant coefficient.

Correlation coefficient.

Variable cost coefficient.

If the accountant uses the high-low method to estimate costs, the cost equation for gym operating costs is:

multiple choice 4

Cost = $5,708 + ($6.72 Gym visits).

Cost = $6,923.

Cost = $5.25 Gym visits.

Cost = $6,923 + ($5.25 Gym visits).

Some other equation.

Based on the results of the accountants high-low method, the estimate of gym operating costs in a month with 3,500 gym visits would be:

multiple choice 5

$10,375.

$6,923.

$10,423.

$28,500.

Some other amount.

The correlation coefficient (rounded) for the regression equation for operating costs is:

multiple choice 6

0.819.

0.836.

0.914.

0.956.

Some other amount.

The percentage of the total variance (rounded) that can be explained by the regression is:

multiple choice 7

81.9.

83.6.

91.4.

95.6.

Some other amount.