Green Mountain College is a 5,000 student state-supported, four-year institution located in the mid-South. Physical facilities can accommodate another 1,000 students, and the college administration is attempting to estimate the added yearly cost of educating the additional students. The Business Manager of Green Mountain College has asked you to evaluate two linear regressions given below, and recommend the better one to her.

Regression 1	Regression 2
SC = 4,303 + 143.50 CH	SC = 3,800 + 441.25 IS
Coefficient of determination, 0.594	Coefficient of determination, 0.707
Standard error of the estimate, 117	Standard error of estimate, 133
(average cost is $6,025)	(average cost is $6,025)

Where: SC = Student cost

CH = Cost per credit hour

IS = Incremental cost per student

Required: (1) Explain your choice of cost function (regression 1 or regression 2) for predicting added student educational costs per year.

(2) What information value does the standard error of estimate (SE) have in this situation?