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 $ 129,451 400 August 82,733 193 September 225,670 1,470 October 216,454 1,078 November 258,293 1,387 December 184,599 1,190 January 219,257 1,417 February 245,090 1,451 March 209,522 1,142 April 191,955 1,201 May 250,128 1,438 June 170,538 498 July 128,257 393 Total $ 2,511,947 13,258 Average $ 193,227 1,020 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 9327181 R Square 0 869963033 Adjusted R Square 0 858141490 Standard Error 19,984 60564 Observations 13 ANOVA df SS MS F Significance F Regression 1 29,391,233,739 29,391,233,739 73 5913299 3 34292E 06 Residual 11 4,393,229,090 399,384,462 7 Total 12 33,784,462,829 Coefficients Standard Error t Stat P value Lower 95 Upper 95 Lower 95 0 Upper 95 0 Intercept 86,208 30382 13,651 03481 6 31514790 5 71542E 05 56,162 57879 116,254 0288 56,162 57879 116,254 0288 X Variable 1 104 9358161 12 23236465 8 578538912 3 34292E 06 78 01256307 131 859069 78 01256307 131 859069 Based on the results of the high low analysis, the estimate of administrative costs in a month with 1,060 credit hours would be (rounded to the nearest whole dollar)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 19, 2024

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

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		$	129,451	400
August			82,733	193
September			225,670	1,470
October			216,454	1,078
November			258,293	1,387
December			184,599	1,190
January			219,257	1,417
February			245,090	1,451
March			209,522	1,142
April			191,955	1,201
May			250,128	1,438
June			170,538	498
July			128,257	393
Total		$	2,511,947	13,258
Average		$	193,227	1,020

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

SUMMARY OUTPUT
*Regression Statistics*
Multiple R	0.9327181
R Square	0.869963033
Adjusted R Square	0.858141490
Standard Error	19,984.60564
Observations	13

ANOVA
	df	SS	MS	F	*Significance F*
Regression	1	29,391,233,739	29,391,233,739	-73.5913299	3.34292E-06
Residual	11	4,393,229,090	399,384,462.7
Total	12	33,784,462,829

	*Coefficients*	*Standard Error*	*t Stat*	*P-value*	*Lower 95%*	*Upper 95%*	*Lower 95.0%*	*Upper 95.0%*
Intercept	86,208.30382	13,651.03481	6.31514790	5.71542E-05	56,162.57879	116,254.0288	56,162.57879	116,254.0288
X Variable 1	104.9358161	12.23236465	8.578538912	3.34292E-06	78.01256307	131.859069	78.01256307	131.859069

Based on the results of the high-low analysis, the estimate of administrative costs in a month with 1,060 credit hours would be: (rounded to the nearest whole dollar)