Williams Horse Farms (WHF) is seeking to determine the driver of operating expenses for the Farm and related production facilities. The accounting department prepared regression analysis based on two different cost drivers with the intension of choosing the driver which would be more appropriate for the estimation of total operations cost. The results of the regressions with each of the competing cost drivers are presented in the table below. Regression 1: Operating cost and Kilograms of feeding material used. Variable Coefficient Standard error Constant -$260,800 $34,180 Independent variable: Kilograms of feeding $9.50 $3.78 material used p = 0.67; Regression 2: Operating cost and Cubic meters of water used Variable Coefficient Standard error Constant $240,350 $28,260 Independent variable: Cubic meters of water $3.75 $1.55 used P = 0.54 Required: a) What are the estimating equations for each of the two regression models b) Evaluate the regression output using the criteria of economic plausibility, goodness of fit, significance of independent variables. c) Management has estimated that they will be 40,640 Kilograms of feeding materials and 19,500 Cubic meters of water used next year. Calculate the estimated Operating cost for the next year