Review the following report of the results of a simple regression program for cost estimation. 
r2 = 0.72
Required:
a.What is the cost estimation equation according to the report?
b.What is the goodness of fit? What does it tell about the estimating equation?
Definitions:
Bad Debt Expense
Represents the amount of receivables a company estimates it will not collect.
Allowance Method
An accounting technique used to estimate and record bad debts expense by anticipating uncollectible accounts.
Allowance Method
An accounting technique used to estimate and record uncollectible accounts receivable, reducing the net value of accounts receivable to an amount expected to be collected.
Credit Sales
Sales in which revenue is recognized at the point of sale but payment is deferred till a later date, typically employed in business-to-business transactions.
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