Question $1(3$ points$)$

Dunder Mifflin Paper Company, Inc. is a manufacturer of bulk printer paper. The

company has compiled data related to factory maintenance costs, specifically

maintenance costs and machine hours, for the past year. A regression analysis was

performed in Excel. The output is as follows:

Assuming a relevant range of $0-15,000$ machine hours, which of the following

statements is false?

If plotted on a graph, the collected data points would lie near the line created

with the above regression analysis output.

If machine hours are zero in a given month, estimated factory maintenance

costs would equal $$4,500$ for that month.

Multiplying $1\mathrm{.}2$ by the number of anticipated machine hours would yield an

estimate of total variable factory maintenance costs for that activity level.

The cost formula represented by the above output is estimated factory

maintenance costs $=$$$0\mathrm{.}98*($number of machine hours$)+$$$54,000$

An estimate of factory maintenance costs at an activity level of $6,500$ machine

hours is $$61,800$