Write a cost equation given regression output (Learning Objective 5) A firm wanted to determine the relationship between its monthly operating costs and a potential cost driver The output of a regression analysis showed the following information a Given this output, write the firm 's monthly cost equation b Should management use this equation to predict monthly operating costs Explain your answer Intercept Coefficient 21,635 X variable 1 Coefficient 62 53 R Square 0 2312

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Question: Write a cost equation given regression output (Learning Objective 5) A firm wanted to determine the relationship between its monthly operating costs and a potential

Write a cost equation given regression output (Learning Objective 5)

A firm wanted to determine the relationship between its monthly operating costs and a potential cost driver. The output of a regression analysis showed the following information:

Intercept Coefficient = 21,635 X variable 1 Coefficient = 62.53 R-Square 0.2312

a. Given this output, write the firm's monthly cost equation.

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

Intercept Coefficient = 21,635 X variable 1 Coefficient = 62.53 R-Square 0.2312

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