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What is the expected annual utility cost

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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?

Reference no: EM133228477

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