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Based on the Following Regression Output, What Is the Equation

question 73

Multiple Choice

Based on the following regression output, what is the equation of the regression line? $\begin{array}{|l|r|r|r|r|r|}\hline \text { Regression Statistics } & & & & & \\\hline \text { Multiple R } & 0.99313 & & & & \\\hline \text { R Square } & 0.98630 & & & & \\\hline \begin{array}{l}\text { Adjusted R } \\\text { Square }\end{array} & 0.98238 & & & & \\\hline \text { Standard Error } & 2.94802 & & & & \\\hline \text { Observations } & 10 & & & & \\\hline & & & & & \\\hline \text { ANOVA } & & & & & \\\hline &{\text { df }} & {\text { SS }} & {\text { MS }} &{F} & \text { Significance F } \\\hline \text { Regression } & 2 & 4379.182 & 2189.591 & 251.943 & 0.0000 \\\hline \text { Residual } & 7 & 60.836 & 8.691 & & \\\hline \text { Total } & 9 & 4440.017 & & & \\\hline & & & & & \\\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } \\\hline \text { Intercept } & 14.169 & 3.856 & 3.674 & 0.008 & 5.050 \\\hline \text { X Variable 1 } & 0.985 & 0.114 & 8.607 & 0.000 & 0.714 \\\hline \text { X Variable 2 } & 0.995 & 0.057 & 17.498 & 0.000 & 0.860\\\hline \end{array}$

Definitions:

Residual Value

The projected sale price of an asset at the termination of its operational life.

Depreciation Expense

Apportioning the expense of a concrete asset across its serviceable life.

Useful Life

The estimated period over which an asset is expected to be usable by the owner.

Straight-Line Method

A depreciation method where an asset's cost is evenly spread across its useful life, resulting in equal depreciation expenses each period.