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

Exercise 38

Curry Rubber manufactures rubber bands for retail companies. The accounting manager has created a regression analysis of past data. You notice that the formula has an R -squared of.6, a t -value of 2.3, and a standard error of the estimate of $200,000. The estimate for next quarter costs is $2,584,072. What do these statistics tell you about the reliability and precision of his regression analysis