The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional l
Posted: Wed Jul 06, 2022 12:25 pm
The managing director of a consulting group has the accompanyingmonthly data on total overhead costs and professional labor hoursto bill to clients. Complete parts a through c.
Overhead Costs Billable Hours
325000 2000
375000 3000
400000 4000
453000 5000
520000 6000
545000 7000
a. Develop a simple linear regression model between billablehours and overhead costs
I took a screenshot of the previous question so please providethe explanation/answer for the two multiple choice questions.Correct answers will receive an upvote.
Overhead Costs = + (x Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.)
b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, bg, if appropriate. Choose the correct answer below. A. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo B. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a clients OC. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by bo OD. The value of bio is the predicted billable hours for an overhead cost of 0 dollars. OE The value of bo is the predicted overhead costs for 0 billable hours. OF It is not appropriate to interpret bo, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars asse
Interpret the coefficient of billable hours, b, if appropriate. Choose the correct answer below A. The value of b, is the predicted overhead costs for 0 billable hours OB It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm OC. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by by D. It is not appropriate to interpret t,, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a cent For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b The value of b, is the predicted billable hours for an overhead cost of 0 dollars.
Overhead Costs Billable Hours
325000 2000
375000 3000
400000 4000
453000 5000
520000 6000
545000 7000
a. Develop a simple linear regression model between billablehours and overhead costs
- The Managing Director Of A Consulting Group Has The Accompanying Monthly Data On Total Overhead Costs And Professional L 1 (8.12 KiB) Viewed 19 times
- The Managing Director Of A Consulting Group Has The Accompanying Monthly Data On Total Overhead Costs And Professional L 2 (511.86 KiB) Viewed 19 times
Overhead Costs = + (x Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.)
b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, bg, if appropriate. Choose the correct answer below. A. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo B. It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a clients OC. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by bo OD. The value of bio is the predicted billable hours for an overhead cost of 0 dollars. OE The value of bo is the predicted overhead costs for 0 billable hours. OF It is not appropriate to interpret bo, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars asse
Interpret the coefficient of billable hours, b, if appropriate. Choose the correct answer below A. The value of b, is the predicted overhead costs for 0 billable hours OB It is not appropriate to interpret by, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm OC. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by by D. It is not appropriate to interpret t,, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a cent For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by b The value of b, is the predicted billable hours for an overhead cost of 0 dollars.