# Question

A firm wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis performed using Excel 2007 showed the following information:

1. Given this output, write the firm’s monthly cost equation.

2. Should management use this equation to predict monthly operating costs? Explain your answer.

1. Given this output, write the firm’s monthly cost equation.

2. Should management use this equation to predict monthly operating costs? Explain your answer.

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