3. Green City Bus Company Lid. is examining the behaviour of the company's monthly transportation costs for budgeting purposes. The observed monthly distance covered by the buses for the year ended 31 December 2021 were as follows: Month Operating costs Maintenance costs Distance covered (KM) Shs. *000" Shs. '000' Shs. '000' January 471 437 3,420 February 504 388 5,310 March 609 343 5,410 April 690 347 8,440 May 742 294 9,320 June 774 211 8,910 July 784 176 8,870 August 986 210 10,980 September 895 280 4,980 October 651 394 5,220 November 481 381 4,480 December 386 514 2,980 Green City Bus used three linear regression equations based on the data above and came up with the following results: Regression equation I: Operating costs = a + Bx Variable Coefficient Standard error t - value Constant 309.19 96.05 3.2 Distance covered in kilometers 0.054 0.014 3.86 = =0.61, Durbin - Watson statistic =1.61 Regression equation II : Maintenance costs = a + Bx Variable Coefficient Standard error t - value Constant 531.55 46.95 11.32 Distance covered in kilometers - 0.031 0.007 - 4.43 = =0.68, Durbin - Watson statistic = 1.72 Regression equation III: Total transportation costs = a + Bx Variables Coefficient Standard error t - value Constant 840.73 80.25 10.48 Distance covered in kilometers 0.023 0.011 2.09 r = 0.29. Durbin - Watson statistic =2.34 Required: a) Explain three limitations of the linear regression analysis used by the company bi Evaluate the three linear regression equations using: Economic plausibility. (ii) Goodness of fit (iii) Significance of independent variables. (iv) Specifications analysis criteria (Use a 95% confidence level where applicable)