Carter Dry Cleaning has developed two regression analyses for cost estimation. The accounting manager has presented statistical measures for both of these regressions. Regression A has an R-squaredvalue of .53 and a t-value of 1.08. Regression B has an R-squared of .89 and a t-value of 2.17. Whatdo these statistical measures indicate about the regressions? Which regression should Carter DryCleaning use for cost estimation?
Carter Dry Cleaning has developed two regression analyses for cost estimation. The accounting manager has presented statistical measures for both of these regressions. Regression A has an R-squaredvalue of .53 and a t-value of 1.08. Regression B has an R-squared of .89 and a t-value of 2.17. Whatdo these statistical measures indicate about the regressions? Which regression should Carter DryCleaning use for cost estimation?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 16MC: Which of the following methods of cost estimation relies on only two data points? A. the high-low...
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Carter Dry Cleaning has developed two regression analyses for cost estimation. The
value of .53 and a t-value of 1.08. Regression B has an R-squared of .89 and a t-value of 2.17. What
do these statistical measures indicate about the regressions? Which regression should Carter Dry
Cleaning use for cost estimation?
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