The New Cost Analyst in Your Accounting Department Has Just

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:
$$\begin{array}{l}\begin{array} { l c c c } \text { Variable } & \text { Coefficient } & \text { Standard Error } & \text { t-Value } \\\text { Constant } & \$ 35.92 & \$ 16.02 & 2.24 \\\text { Independent variable } & \$ 563.80 & \$ 205.40 & 2.74\end{array}\\\mathrm { r } ^ { 2 } = 0.75\end{array}$$
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?
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Correct Answer:

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a.y = $35.92 + $563.80X
b.Goodness of fi...

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