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		$	129,501		450
August			82,773		219
September			225,700		1,496
October			216,474		1,104
November			258,303		1,413
December			184,649		1,216
January			219,297		1,443
February			245,120		1,477
March			209,542		1,168
April			191,965		1,227
May			250,178		1,464
June			170,578		524
July			128,287		419
Total		$	2,512,367		13,620
Average		$	193,259		1,048

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

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.9327497
R Square	0.870021960
Adjusted R Square	0.858205774
Standard Error	19,978.27233
Observations	13

ANOVA
	df	SS	MS	F	Significance F
Regression	1	29,387,914,880	29,387,914,880	-73.6296804	3.33451E-06
Residual	11	4,390,445,018	399,131,365.3
Total	12	33,778,359,898

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	82,718.00904	14,023.50637	5.89852544	0.000103338	51,852.47962	113,583.5385	51,852.47962	113,583.5385
X Variable 1	105.5090222	12.29597978	8.580773884	3.33451E-06	78.44575318	132.572291	78.44575318	132.572291

Based on the results of the high-low analysis, the estimate of administrative costs in a month with 1,080 credit hours would be: (rounded to the nearest whole dollar)

Multiple Choice

• $179,141.

• $197,162.

• $198,370.

• $196,017.