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Red Cedar Manufacturing is interested in improving planning and control of its maintenance costs.
The controller has obtained hours worked and cost data for the past year and developed the following regression output:
Constant 1,435.11
Std Err of Y Est 58.85
R2 0.91
No. of Observations 12
X Coefficient(s) 4.94
Std Err of Coef. 0.19
Question 1: What amount of total maintenance cost would the controller predict for a level of 660 hours worked?
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