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

This equation

should not be used

to predict costs. The$$ R$-$square statistic can range from a high of

$1\mathrm{.}00$

to a low of

$0$

$.$

In this$$ case, the$$ R$-$square indicates that the cost equation

is very reliable

$,$

indicating there

is a fairly strong

relationship between the potential cost driver and the advertising$$ agency's operating costs.