What is the expected annual utility cost of the company if it has 150 machines, and it will use 5,000 hours for next year?
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An auditor uses regression analysis to evaluate relationship between utility cost and machine hours. The following information is available based from monthly cost and machine hours of the company:
· Intercept: 3,000
· Regression is .90
· Correlation coefficient is .80
· SD error 2,000
· No of observations: 1,000
What is the expected annual utility cost of the company if it has 150 machines, and it will use 5,000 hours for next year?
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