The Business School at Eastern College is collecting data as a first step in the preparation of next year's budget. One cost that is being looked at closely is administrative staff as a function of student credit hours. Data on administrative costs and credit hours for the most recent 13 months follow:

Month	Administrative Costs			Credit Hours
July	$	125,393			295
August		85,953			211
September		233,107			1,490
October		221,629			1,226
November		262,309			1,494
December		187,969			1,342
January		224,198			1,858
February		252,608			2,938
March		213,149			1,517
April		195,488			1,320
May		254,259			1,619
June		172,532			732
July		130,160			496
Total	$	2,558,754			16,538
Average	$	196,827			1,272

The controller's office has analyzed the data and given you the results from the regression analysis:

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.84494737
R Square	0.713936060
Adjusted R Square	0.687930240
Standard Error	30663.61450
Observations	13

ANOVA

	df	SS	MS	F	Significance F
Regression	1	25812827272.00	25812827272.00	27.4500000	0.0002770
Residual	11	10342829797	940257254
Total	12	36155657068.00

	Coefficients	Standard Error	T Stat	P-value	Lower 95%	Upper 95%
Intercept	115905.949	17631.05136	6.57396698	0.0000400	77100.2474	154711.6515
Credit Hours	63.6096661	12.1402792	5.23955545	0.0002770	36.8890782	90.3302539

Required:

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

	Constant coefficient.
	Correlation coefficient.
	Dependent variable.
	Independent variable
	Variable cost coefficient.

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

	Constant coefficient.
	Correlation coefficient.
	Dependent variable.
	Independent variable
	Variable cost coefficient.

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

	Constant coefficient.
	Correlation coefficient.
	Dependent variable.
	Independent variable
	Variable cost coefficient.

d. If the controller uses the high-low method to estimate costs, the cost equation for administrative costs is: (Do not round your intermediate calculations.)

	Cost = $73,058 + ($61 Credit hours).
	Cost = $71,558 + ($71 Credit hours).
	Cost = $173,058.00 Credit hours.
	Cost = $51.
	Some other equation.

e. Based on the results of the controller's regression analysis, the estimate of administrative costs in a month with 1,070 credit hours would be: (Round your intermediate calculations to 2 decimals.)

	185,222
	219,615
	83,943
	183,969
	Some other amount.

f. The correlation coefficient (rounded) for the regression equation for administrative costs is:

	0.720
	0.845
	0.745
	0.919
	Some other amount.

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

	69.4
	71.4
	72.6
	84.5
	Some other amount.