Question: Midose's Stables used two different independent variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses. The
Midose's Stables used two different independent variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses. The most recent results of the two regressions are as follows:
| Trainer's hours: | ||||
| Variable | Coefficient | Standard Error | t - Value | |
| Constant | $ 1 comma 005.25$1,005.25 | $ 217.56$217.56 | 4.61 | |
| Independent Variable | $ 22.97$22.97 | $3.23 | 7.037.03 | |
| r2 = 0.56 |
| Number of horses: | ||||
| Variable | Coefficient | Standard Error | t - Value | |
| Constant | $ 5 comma 240.95$5,240.95 | $ 1 comma 180.68$1,180.68 | 4.44 | |
| Independent Variable | $ 951.57$951.57 | $271.85 | 5.755.75 | |
| r2 = 0.63 |
What is the estimated total cost for the coming year if
15 comma 30015,300
trainer hours are incurred and the stable has
390390
horses to be trained, based upon the best cost driver?
A.
$ 9 comma 963.55$9,963.55
B.
$ 609 comma 623.63$609,623.63
C.
$ 352 comma 446.25$352,446.25
D.
$ 376 comma 353.25$376,353.25
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