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The following excerpts from four regression analysis reports describe the relati

ID: 2452319 • Letter: T

Question

The following excerpts from four regression analysis reports describe the relationship between a major operating cost and four cost drivers for Tory Corp.

Regression Statistics

Regression Statistics

R-Sq.

0.228

R-Sq.

0.337

Std. Error

36.627

Std. Error

25.519

Observations

12

Observations

12

Coefficients

Coefficients

Intercept

1537.416

Intercept

1926.908

Labor Hrs

80.576

Machine Hrs

69.123

Regression Statistics

Regression Statistics

R-Sq.

0.665

R-Sq.

0.774

Std. Error

42.407

Std. Error

30.353

Observations

12

Observations

12

Coefficients

Coefficients

Intercept

1323.323

Intercept

1700.657

Kilowatt Hrs

46.822

Customer Visits

23.409


.
Which cost driver is the best predictor of the operating cost?

Labor hours

Machine hours

Kilowatt hours

Customer visits

Regression Statistics

Regression Statistics

Explanation / Answer

The following excerpts from four regression analysis reports describe the relati

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