The New Cost Analyst in Your Accounting Department Has Just

question 50

Essay

The new cost analyst in your accounting department has just received a computer-generated report that contains the results of a simple regression program for cost estimation.The summary results of the report appear as follows:
r² = 0.75
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?

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Definitions:

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