Ida Corp. is working to estimate the added annual Maintenance costs. Two linear regressions are provided below

Regression 1-Machine Hours

MC = 4,303 + 143.50 MH

R square, 0.594

t-value independent variable, 1.32

Standard error of the estimate, 117

Regression 2-Kilowatt Hours

MC = 38,000 + 441.25 KW

R square, 0.707

t-value independent variable, 3.08

Standard error of estimate, 133

Where:

SC = Maintenance cost

MH = Machine hours

KW = Kilowatt hours

a.Using the data above indicate the best regression for predicting Maintenance costs.Explain why you chose this regression giving two reasons in your answer.

b.What is the cost estimation equation based on your answer in question a?

c. Using the regression from your answer in question b. above, if Machine Hours are expected to be 1,200 and Kilowatt Hours are expected to equal 400 calculate the estimate for Maintenance costs