Accountants at the firm Walker and Walker believed that several traveling executives submit unusually high travel vouchers when they return from business trips. The accountants took a sample of 200 vouchers submitted from the past year;

they then developed the following multiple regression equation relating expected travel cost (Y)

to number of days on the road 1X12 and distance traveled 1X22 in miles:

The coefficient of correlation computed was 0.68.

(a) If Thomas Williams returns from a 300-mile trip that took him out of town for 5 days, what is the expected amount that he should claim as expenses?

(b) Williams submitted a reimbursement request for $685; what should the accountant do?

(c) Comment on the validity of this model. Should any other variables be included? Which ones? Why?

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$90.00 $48.50X + $0.40X2 =