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When trying to determine the relationship between monthly operating costs and a potential cost driver, the output of regression analysis showed the following results for
When trying to determine the relationship between monthly operating costs and a potential cost driver, the output of regression analysis showed the following results for Wilson, Inc.: Intercept Coefficient = 89,500 X Variable 1 Coefficient = 62.50 R-square = 0.9855 Should Wilson, Inc. use this information to predict monthly operating costs? There is not enough information to make this prediction. Yes, because R-square is so high. No, because R-square is so high. Yes, because regression analysis can always be relied upon
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