The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost Explained by Units Produced
Constant $15,685
Standard error of Y estimate $3,500
r2 0.7832
Number of observations 20
X coefficient(s) 10.25
Standard error of coefficient(s) 2.1876
A) Y = $15,685 + $10.25X
B) Y = $3,500 + $5.15X
C) Y = $19,185 + $4.48X
D) Y = $12,285 + $10.25X

Answer: A

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