Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 24

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 -squared value of.53 and a t -value of 1.08 and 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