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In your summer internship, you were assigned the responsibility of analyzing the cost behavior of your firms sales expense based on number of units sold.
In your summer internship, you were assigned the responsibility of analyzing the cost behavior of your firms sales expense based on number of units sold. Using excel, you run a regression and get the following output.
Based on this output, what is the predicted sales expense if the company sells 950 units next year? (Round the number you use from the output to the nearest penny, e.g. $x.xx)
Should the company rely on this estimate? Why or why not?
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