Question: 7. Your client wants to determine the relationship between its annual Repairs & Maintenance (R&M) costs and a potential cost driver (number of machine hours
7. Your client wants to determine the relationship between its annual Repairs & Maintenance (R&M) costs and a potential cost driver (number of machine hours worked). The output of a regression analysis showed the following information: Y-Intercept = 126,078 X Variable = 122.12 R-square 0.2852 Should your client use the equation (Y = $126,078 + $122.12X) to predict next year's R&M costs? A. Yes, because R-square is so low. B. No, because R-square is so low. C. Yes, because regression analysis can be relied upon D. There is not enough information to make this prediction
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