This problem has been solved! See the answer Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department’s cost records,...

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Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department’s cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms:




Term Number of Sections Offered Total Cost


Fall, last year 4 $ 10,000


Winter, last year 7 $ 13,000


Summer, last year 3 $ 8,000


Fall, this year 2 $ 7,500


Winter, this year 5 $ 12,000


Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes.




2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.




2-b. Express these estimates in the form Y = a + bX.




For 2a, I got 1209 for fixed cost and 5,020 for Variable cost per section but it said it was wrong

May 26, 2022
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