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?
Definitions:
Retinopathy
A degeneration of the retina caused by a decrease in blood supply.
Lens Changes
Lens changes refer to alterations in the eye's lens, including its shape and clarity, which can affect vision and may require corrective lenses or surgery.
Diabetes
A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or properly use insulin.
Graves' Disease
An autoimmune disorder that results in the overproduction of thyroid hormones, leading to symptoms like anxiety, hand tremor, heat sensitivity, weight loss, and bulging eyes.
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