Ben and Mildred's Stables Used Two Different Independent Variables (Trainer

question 103

Multiple Choice

Ben and Mildred's Stables used two different independent variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses.The most recent results of the two regressions are as follows:
Trainer's hours:

R² = 0.56
Number of horses:

R² = 0.63
What is the estimated total cost for the coming year if 14,700 trainer hours are incurred and the stable has 310 horses to be trained,based upon the best cost driver?

• A)$7,992.85
• B)$300,276.50
• C)$332,343.45
• D)$13,995,671.20

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Definitions:

Consideration

In contract law, consideration refers to something of value exchanged between parties as part of an agreement.

Preexisting Duty

A duty that already exists under contract law, which cannot be used as consideration for a new promise or contract.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Consideration

The value (which could be in the form of goods, services, or money) exchanged between parties in a contract, making the agreement legally binding.