Mathematics, 11.10.2020 23:01 adaneri1234
Method of Least Squares, Evaluation of Cost Equation Lassiter Company used the method of least squares to develop a cost equation to predict the cost of moving materials. There were 80 data points ft the regression, and the following computer output was generated: Intercept $19,050 Slope Coefficient of correlation 0.91 Standard error $220 The activity driver used was the number of moves.
Required:
1. What is the cost formula?
2. Using the cost formula, predict the cost of moving materials if 340 moves are made.
3. What percentage of the variability in moving cost is explained by the number of moves? (Round percentage to two decimal places.)
Answers: 1
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