Your Client's Company Wants to Determine the Relationship Between Its

Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The output of regression analysis showed the following information: Intercept Coefficient = 75,828
X Variable 1 Coefficient = 52.61
R-square = 0.9756
Should your client use this information to predict monthly operating costs?

A) No, because R-square is so high.
B) Yes, because R-square is so high.
C) Yes, because regression analysis can always be relied upon.
D) There is not enough information to make this prediction.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Sign up to view answer