The method of least squares was used to develop a cost equation to predict the cost of purchasing goods. Eighty data points were used for the regression. The following computer output was received:

Required:
1. What is the cost formula?
2. Using the cost formula, predict the cost of purchasing if 10,000 orders are processed.
3. What percentage of the variability in purchasing cost is explained by number of purchase orders? Do you think the equation will predict well? Why or why not?lop5

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Intercept $30,500 Slope 10 Coefficient of correlation 0.85 Standard error $1,500 The driver used was "number of purchase orders."