A legal firm 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 legal firm's monthly cost equation.
b. Should management use this equation to predict monthly operating costs? Explain your answer.

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SUMMARY OUTPUT Regression Statistics 3 Multiple R 4 R Square 5 Adjusted R Square 6 Standard Error Observations ANOVA 0.92 0.84 0.81 148.38 12 Significance F df SS 573,116.90 110,083.10 MS 573,116.90 22,016.62 9. 10 Regression 11 Residual 26.03 0.00 10 11 12 Total 683,200.00 13 Standard Error 806.85 Lower Upper 95% 3,337.42 0.39 14 P-value Coefficients 1,263.34 t Stat 15 16 Intercept 17 X Variable 1 95% 1.57 0.18 -810.75 0.13 0.00 0.26 0.05 5.10 18 D.