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An accountant at the rm Bragg and Bragg believed that several traveling executives were submitting unusu- ally high travel vouchers when they returned from business
An accountant at the rm Bragg and Bragg believed that several traveling executives were submitting unusu- ally high travel vouchers when they returned from business trips. First, she took a sample of 300 vouch ers submitted from the past year. Then she developed the following multiple regression equation relating expected travel cost (y) to number of days on the road (:51) and distance traveled (x2) in miles: f = $90.00 + $48.50x1 + $0.402:2 The coefcient of correlation computed was .68. a. If Bill Tomlinson returns from a 300-mile trip that took him out of town for 5 days, what is the expected amount he should claim as expenses (use the regression equation to predict this value)? b. Tomlinson submitted a reimbursement request for $685. What should the accountant do? c. Should any other variables be included? Which ones? Why
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