Larson's Stables uses two different independent variables in two different equations to evaluate the cost activities of training horses, trainer's hours, and number of horses. The most recent year's results of the two regressions are as follows: Trainer's hours:
r² = 0.56
Number of horses:
r² = 0.63
What is the estimated cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained based on the best cost driver?

Question

Larson's Stables uses two different independent variables in two different equations to evaluate the cost activities of training horses, trainer's hours, and number of horses. The most recent year's results of the two regressions are as follows: Trainer's hours:

r² = 0.56
Number of horses:

r² = 0.63
What is the estimated cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained based on the best cost driver?

Quizplus · Accepted Answer

The Answer of Larson's Stables uses two different independent variables in two different equations to evaluate the cost activities of training horses, trainer's hours, and number of horses. The most recent year's results of the two regressions are as follows: Trainer's hours: r² = 0.56 Number of horses: r² = 0.63 What is the estimated cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained based on the best cost driver? A) $33,555.50 B) $99,929.09 C) $350,756.50 D) $335,313.32 E) $13,844,444.50

Larson's Stables Uses Two Different Independent Variables in Two Different