A legal firm wanted to determine the relationship between its monthly operating costs and a potential cost driver, professional hours. An excerpt from the output of a regression analysis performed using Excel showed the following information: (Click the icon to view the regression data) a. Given this output, write the legal firm's monthly cost equation. b. Should management use this equation to predict monthly operating costs? Explain your answer. a. Given this output, write the legal firm's monthly cost equation. (Enter all amounts to the nearest cent, X.XX.) The legal firm's monthly cost equation is: y = X + b. Should management use this equation to predict monthly operating costs? Explain your answer. This equation v to predict costs. The R-square statistic can range from a high of v to a low of In this case, the R-square indicates that the cost equation indicating there relationship between the potential cost driver and the advertising agency's operating costs. Data table A D E F G B SUMMARY OUTPUT 1 N Regression Statistics 0.86 0.75 3 Multiple R 4 R Square 5 Adjusted R Square 6 Standard Error 0.7 171.55 12 7 Observations 8 ANOVA 9 df SS MS F Significance F 10 Regression 1 435,336.22 435,336.22 14.79 0.01 11 Residual 10 147,149.49 29,429.90 12 Total 11 582,485.71 14 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 15 Intercept 709.81 1,150.73 0.62 0.56 -2,248.24 3,667.85 16 X Variable 1 0.29 0.07 3.85 0.01 0.09 0.48 A legal firm wanted to determine the relationship between its monthly operating costs and a potential cost driver, professional hours. An excerpt from the output of a regression analysis performed using Excel showed the following information: (Click the icon to view the regression data) a. Given this output, write the legal firm's monthly cost equation. b. Should management use this equation to predict monthly operating costs? Explain your answer. a. Given this output, write the legal firm's monthly cost equation. (Enter all amounts to the nearest cent, X.XX.) The legal firm's monthly cost equation is: y = X + b. Should management use this equation to predict monthly operating costs? Explain your answer. This equation v to predict costs. The R-square statistic can range from a high of v to a low of In this case, the R-square indicates that the cost equation indicating there relationship between the potential cost driver and the advertising agency's operating costs. Data table A D E F G B SUMMARY OUTPUT 1 N Regression Statistics 0.86 0.75 3 Multiple R 4 R Square 5 Adjusted R Square 6 Standard Error 0.7 171.55 12 7 Observations 8 ANOVA 9 df SS MS F Significance F 10 Regression 1 435,336.22 435,336.22 14.79 0.01 11 Residual 10 147,149.49 29,429.90 12 Total 11 582,485.71 14 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 15 Intercept 709.81 1,150.73 0.62 0.56 -2,248.24 3,667.85 16 X Variable 1 0.29 0.07 3.85 0.01 0.09 0.48
