Section 2: Cost estimation and prediction 18 marks Part 1 9 marks Sleipnir Ltd operates a bus service and wants a regression model that can be used to predict revenue. The analyst produced the following two models by setting Revenue per km as the dependent variable (Y) and various other factors as the independent variables (X). Mndel 1 Model 2 Sleipnir Ltd expects the following for the next accounting period: Cost per km is $18, Km travelled per year (000) is 14,000 , Percent of petrol fleet is 95%, and Percent of double decker fleet is 30%. Required: 1. Based on the regression outputs available, evaluate and comment on the following: (a) Which model is better for prediction purposes and why. (3 marks) (b) What factor(s) are found to influence Revenue per km. (3 marks) 2. Using the better model identified in 1(a), predict Revenue per km for the next accounting period