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The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units

The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost Explained by Units Produced

Constant

$15,685

Standard error of Y estimate

$3,500

r2

0.7832

Number of observations

20

X coefficient(s)

10.25

Standard error of coefficient(s)

2.1876

A.

Y = $12,285 + $10.25X

B.

Y = $3,500 + $5.15X

C.

Y = $15,685 + $10.25X

D.

Y = $19,185 + $4.48X

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