The College of Business at Northeast College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the past thirteen months are shown below: Month Administrative Costs Credit Hours July $ 129,301 250 August 82,613 115 September 225,580 1,392 October 216,394 1,000 November 258,263 1,309 December 184,449 1,112 January 219,137 1,339 February 245,000 1,373 March 209,462 1,064 April 191,925 1,123 May 249,978 1,360 June 170,418 420 July 128,167 315 Total $ 2,510,687 12,172 Average $ 193,130 936 The controller's office has analyzed the data and has given you the results from the regression analysis: SUMMARY OUTPUT Regression Statistics Multiple R 0.9317157 R Square 0.868094147 Adjusted R Square 0.856102705 Standard Error 20,134.92395 Observations 13 ANOVA df SS MS F Significance F Regression 1 29,349,143,514 29,349,143,514 72.3928117 3.61909E-06 Residual 11 4,459,566,787 405,415,162.4 Total 12 33,808,710,301 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 96,647.02398 12,641.66539 7.64511803 1.00291E-05 68,822.90608 124,471.1419 68,822.90608 124,471.1419 X Variable 1 103.0607697 12.11283103 8.508396541 3.61909E-06 76.40060833 129.720931 76.40060833 129.720931

The percent of the total variance that can be explained by the regression is:

93.3%. 86.8%. 85.9%. 96.6%.