An independent health clinic's managers want to better understand its costs associated with x-rays. The clinic accountant assembled cost information and conducted a regression analysis that produced the following output:

Regression Statistics

Multiple R 0.919

R Square 0.846

Adjusted R Square 0.824

Standard Error 1442.971

Observations 9

Coefficients Standard Error t Stat P-value

Intercept 10,339.86 2077.02 4.97 0.001604

X-Rays 2.70 0.40 6.21 0.000441

a. Provide an explanation of why you think this model appears to explain the variation between observations of x-ray expenses well, or not.

b. Provide an estimate of the total costs for x-rays for a period in which the clinic expects to perform 7,500 x-rays. (Show your calculations.)