Pam's Stables used two different independent variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses. The most recent results of the two regressions are as follows:

Trainer's hours:

Variable Coefficient Standard Error t-Value Constant $913.32 $198.12 4.61 Independent Variable $20.90 $ 2.94 2.11 r2 = 0.56

Number of horses:

Variable Coefficient Standard Error t-Value Constant $4,764.50 $1,073.09 4.44 Independent Variable $864.98 $ 247.14 3.50 r2 = 0.82

Using the more reliable cost driver, what is the estimated total cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained? In other words, use the regression results that you believe are more reliable to estimate the total cost for the year.

Question 21 (1 point)

Referring to the question above, what statistics did you rely on in choosing the more reliable regression estimates and why?

Question 21 options: