The value of the independent variable in a simple regression determines the slope of the line on a graph. It does not determine the level of the constant.
In statistics, an "outlier" is an observation that is far away from the remainder of the observations. It appears to deviate markedly from the rest of the data. There is nothing in this question indicating that many outliers wee included in the data.
A semi-variable cost has both a fixed component and a variable component. There is a basic fixed amount that must be paid regardless of activity, even if there is no activity. And added to that fixed amount is an amount that varies with activity. Therefore, a semi-variable cost would graph as a straight line where the straight line begins at the level of the fixed component and moves upward at a constant slope based on the variable component. Based upon the cost function given, this cost does exhibit semi-variable behavior.
A semi-variable cost has both a fixed component and a variable component. There is a basic fixed amount that must be paid regardless of activity, even if there is no activity. And added to that fixed amount is an amount that varies with activity. Therefore, a semi-variable cost would graph as a straight line where the straight line begins at the level of the fixed component and moves upward at a constant slope based on the variable component. However, a negative amount of fixed cost at zero output (represented by ?25,000 in the cost function) is not possible. The only way that could occur is if someone is paying the company not to produce, and that is not one of the available answer choices. A cost function such as the one given is usable for measuring costs only within the relevant range. The relevant range is the span of activity over which a certain cost behavior holds true. For example, the cost behavior for the cost function given might hold true for production between 15,000 units and 20,000 units. However, at any level below 15,000 units, the cost function does not hold true. At 15,000 units, total cost according to the cost function would be ?25,000 + (2.5 × 15,000) = $12,500. At 20,000 units, total cost according to the cost function would be ?25,000 + (2.5 × 15,000) = $25,000. However, if the cost function is applied to a production leve of 10,000l, the result is ?25,000 + (2.5 × 10,000) = $0, which is not possible. And at a zero production level, the result is ?25,000 + (2.5 × 0) = ?$25,000, which is also not possible. Therefore, the zero level of output is outside of the relevant range.
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