The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of Activity 480 320 400 300 500 January February March April May June July August September October November December Sum Average 310 320 520 490 470 350 340 4,800 400 Maintenance Costs $ 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $ 43, 200 3,600 684.65 7.2884 49.515 0.12126 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value a T-value b 34.469 0.99724 13.827 60.105 What would be the cost equation if regression analysis is used? What would be the cost equation of regression analysis is used? Multiple Choice Maintenance Costs = $7.2884 -($684.65 Hours of Activity). Maintenance Costs = $684.65 - ($49.515 Hours of Activity). Maintenance Costs = $684.65 - ($7.2884 * Hours of Activity)- Maintenance Costs = $34.469 - ($0.99724 Hours of Activity)