Develop a regression model

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Develop a regression model to identify the fixed overhead costs to the consulting group. a. What is...
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The managing director of a consulting group has the following monthly data on total overhead costs and professional labor hours to bill to clients:

Total

Billable

$340,000

3,000

$400,000

4,000

$435,000

5,000

$477,000

6,000

$529,000

7,000

$587,000

8,000

Develop a regression model to identify the fixed overhead costs to the consulting group.

a. What is the constant component of the consultant group"s overhead?

b. If a special job requiring 1,000 billable hours that would contribute a margin of $38,000 before overhead was available, would the job be attractive?

 

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