An advertising agency wanted to determine the relationship between its monthly operating costs and a potential cost driver, professional hours. An excerpt from the output of a regression analysis performed using Excel showed the following information:

a. Given this output, write the advertising agency€™s monthly cost equation.
b. Should management use this equation to predict monthly operating costs? Explain youranswer.

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SUMMARY OUTPUT Adjusted R Square Standard Error 7 Otservations -중-. ANOVA Significance F 0,01 MS 10 Regression 11 Rasidual 1 362,39124 362,39142 10 117.751.6123,550.32 11 480 142.85 15.39 Standard Lower Upper Coefficients Erra tStatP-value 16 Interoept 17 XVariable 1 1,784.73 88455 0.06 2,02 3.92 9,97 0.01 -489.09 0.07 4,058.55 0.36