Using the least-squares regression method of analysis, the estimated monthly fixed component of lubrication cost is closest to:

A) $1,050
B) $1,060
C) $1,121
D) $1,144

Least-squares Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by minimizing the sum of the squares of the differences between observed and predicted values.

Monthly Fixed

Costs that do not change with the level of production or sales in a month, such as rent, salaries, and insurance.

Lubrication Cost

The expenses associated with lubricating machinery or equipment to ensure smooth and efficient operation.