GROUP # NAMES: 1 Decide upon a model. Specify the model your chose, using the variable labels given in case facts 2 Briefly explain which of the two regression models you chose, y=ax or y=ax+b. Why did you choose that m 3 If the maximum tolerable misstatement is $100m, what conclusion can you make from your analysis?C D E F G H J K THE CASE You are auditing Alaska Air Group for the year ended 31 Dec 2020. Covid has seriously affected the airline industry, including your client. You want to perform a substantive analytical procedure to asses the reasonableness of ALK's fuel expenses. You have the following data, which you have determined to be reliable. You plan to perform regression analysis, but you have not decided upon the form of the model [ y=ax or y=ax+b], nor have you decided on the independent variable [x]. THE DATA $ millions Revenue Aircraft Total Other Passenger Fuel Operating Operating Operating Miles gallons Year Expenses Revenues Expenses Expenses (000,000) (000,000) FXi REVi TTLOPXi OTHOPXi RPMi GALI 2017 1447 7894 6686 5239 7301 797 2018 1936 8264 7261 5325 7631 839 2019 1878 8781 7718 5840 8095 862 2020 723 3566 5341 4618 3019 461 REQUIRED 1. Decide upon a model. Specify the model you chose with the variable labels given above 2. Why did you choose that model? 3. If the maximum tolerable misstatement is $100m, what conclusion can you make from your analysis? [Refer to Topic 6.] ENTER YOUR DATA IN THE ACCOMPANYING REGRESSION SPREADSHEETS ENTER YOUR RESPONSES TO THE ABOVE QUESTIONS IN THE RESPONSES SPREADSHEET. CASE FACTS RESPONSES y=ax y=ax+b