A legal firm wanted to determine the relationship between its monthly operating costs and a potential cost driver, professional hours. An excerpt from the output of a regression analysis performed using Excel showed the following information:
1) Given this output, write the firm's monthly cost equation:
2) Should management use this equation to predict monthly operating costs? Explain your answer:
A Legal Firm Wanted To Determine The Relationship Between Its Monthly Operating Costs And A Potential Cost Driver Profe 1 (117.67 KiB) Viewed 51 times
erpt from the output of a regression anal wed the following info i A D B с SUMMARY OUT PUT Regression Statistics Multiple R R Savare Adjusted RSquare Standard Error Observations AN OVA Regression Residual Total df 1 10 11 0.92 0.84 0.81 148.38 12 SS MS 573,116.90 5 73,116.90 110,083.10 22,016. GR 683,200.00 Coefficiats Standard Error + Stat Interest 1,263,34 806.85 1.57 XVariatie1 0.26 0,05 5.10 E F 26.03 F Significance 8.00 6 P-Value Lower 95% Upper 9 0.18 -810.75 3.337.Y 0.13 0.39 this out at write the legal firm's monthly cast ea
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