Accountants at the Tucson firm, Larry Youdelman CPAs believed that several traveling executives were submitting unusually high travel vouchers when they returned from business trips. First they took a sample of 200 vouchers submitted from the past year. Then they developed the following multiple regression equation relating expected travel cost to number of days on the road (X1) and distance traveled (X2) in miles: ^y= $95.00 + $50.50x1+$0.40x2 The coefficient of correlation for the model is 0.72 a) If Donna Battista returns from 300 mile trip that took her out of town for 6 days, the expected amount that she should claim as expense= $[__] (round your response to two decimal places)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Accountants at the Tucson firm, Larry Youdelman CPAs believed that several traveling executives were submitting unusually high travel vouchers when they returned from business trips. First they took a sample of 200 vouchers submitted from the past year. Then they developed the following multiple regression equation relating expected travel cost to number of days on the road (X1) and distance traveled (X2) in miles:
^y= $95.00 + $50.50x1+$0.40x2
The coefficient of
a) If Donna Battista returns from 300 mile trip that took her out of town for 6 days, the expected amount that she should claim as expense= $[__] (round your response to two decimal places)
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