(Solved): Monthly Overhead Costs and Billable Hours Data a. Develop a simple linear regression model betwee ...

Monthly Overhead Costs and Billable Hours Data a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs $$=+(?\times$$ Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $$\$$$ symbol in your answers.) b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, $${\mathrm{b}}_0$$, if appropriate. Choose the correct answer below. A. It is not appropriate to interpret $$b_0$$, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. B. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by $$b_0$$. C. The value of $$b_0$$ is the predicted billable hours for an overhead cost of 0 dollars. D. It is not appropriate to interpret $$b_0$$, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. E. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by $${\mathrm{b}}_0$$. F. The value of $$b_n$$ is the predicted overhead costs for 0 billable hours. Interpret the coefficient of billable hours, $$b_1$$, if appropriate. Choose the correct answer below. A. The value of $$b_1$$ is the predicted overhead costs for 0 billable hours. B. It is not appropriate to interpret $$b_1$$, because its value is the predicted billable hours for overhead costs of 0 dollars, but the firm cannot have overhead costs of 0 dollars associated with a client. C. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by $$b_1$$. D. For each increase of 1 unit in billable hours, the predicted overhead costs are estimated to increase by $$b_1$$. E. It is not appropriate to interpret $$b_1$$, because its value is the predicted overhead costs for 0 billable hours, but someone with 0 billable hours would not actually be a client of the firm. F. The value of $$b_1$$ is the predicted billable hours for an overhead cost of 0 dollars. c. If a special job was available requiring 4,500 billable hours that would contribute a margin of $$\$310,000$$ before overhead, would the job be attractive? Since the predicted overhead costs of a client with 4,500 billable hours would be $$\$$$, which is the margin of $$\$310,000$$ before overhead, the iob be attractive.