Question
The following excerpts from four regression analysis reports describe the relationship between a major operating cost and four cost drivers for Tory Corp. Regression Statistics
The following excerpts from four regression analysis reports describe the relationship between a major operating cost and four cost drivers for Tory Corp.
| Regression Statistics |
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| Regression Statistics |
| R-Sq. | 0.228 |
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| R-Sq. | 0.337 |
| Std. Error | 36.627 |
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| Std. Error | 25.519 |
| Observations | 12 |
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| Observations | 12 |
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| Coefficients |
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| Coefficients |
| Intercept | 1537.416 |
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| Intercept | 1926.908 |
| Labor Hrs | 80.576 |
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| Machine Hrs | 69.123 |
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| Regression Statistics |
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| Regression Statistics |
| R-Sq. | 0.665 |
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| R-Sq. | 0.774 |
| Std. Error | 42.407 |
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| Std. Error | 30.353 |
| Observations | 12 |
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| Observations | 12 |
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| Coefficients |
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| Coefficients |
| Intercept | 1323.323 |
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| Intercept | 1700.657 |
| Kilowatt Hrs | 46.822 |
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| Customer Visits | 23.409 |
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. Which cost driver is the best predictor of the operating cost?
| Labor hours | ||
| Machine hours | ||
| Kilowatt hours | ||
| Customer visits |
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