Southside Hospital is trying to get a better idea of the costs in its cardiac surgical unit. Unit cost data for supplies, labor, etc. have been collected for a three-year period. After analyzing the data using Excel, the following output was generated, based on 1,500 procedures.

Intercept = $2,169, 000
Coefficient on procedures $972
Correlation coefficient = 0.448
R² = 0.189
The controller asks you for advice on whether to rely on this estimate. Based on the output, what would you say?

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The Answer of Southside Hospital is trying to get a better idea of the costs in its cardiac surgical unit. Unit cost data for supplies, labor, etc. have been collected for a three-year period. After analyzing the data using Excel, the following output was generated, based on 1,500 procedures. Intercept = $2,169, 000 Coefficient on procedures $972 Correlation coefficient = 0.448 R² = 0.189 The controller asks you for advice on whether to rely on this estimate. Based on the output, what would you say?

Southside Hospital Is Trying to Get a Better Idea of the Costs