Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 7

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