Refer to P3.7. The following linear regression results were obtained using these data:

Required:

A. Determine the revenue formula using the linear regression output.B. What is the estimated revenue if 5,600 tax schedules are prepared in one period?C. What is the estimated revenue if 2,200 tax schedules are prepared in one period?D. Does the relevant range concept impact your answer to part (C)?E. Evaluate the strength of the linear regression analysis.

Data from in P3.7

Scott, LLC, has gathered the following information regarding the number of tax schedules prepared and the revenue generated.

Transcribed Image Text:

Regression Statistics Multiple R R square Coefficients 0.8412 Intercept 0.7076 Number of schedules 31837.1859 1.1155