The GPS Company is trying to derive a cost equation that predicts its monthly materials handling costs. GPS estimated the following two equations using regression analysis.
Equation 1:
Materials-handling costs per month = $24,543.34 + ($0.027 × value of materials handled)
R-square = 54.17%
Both coefficients have p-values of 0.05 or lower.

Equation 2:
Materials-handling costs per month = $12,452.56 + ($10.45 × number of material moves)
R-square = 76.34%
Both coefficients have p-values of 0.01 or lower.

Required:
Which of these two equations do you believe better predicts GPS’s monthly materials handling costs? Why?