Independent variables appear to be statistically

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Reference no: EM133130228

Accountants at  the Renong and Khalid Accountant Company  believed that several traveling executives were submitting unusually high travel vouchers when they returned from business trips. First, they took a sample of 200 vouchers submitted from the past year. Then they developed the following multiple-regression equation relating expected travel cost (Y) to number of days on the road (X1) and distance traveled (X2) in miles:

Y =  90.00 + 48.50X1  + 0.40X2               

Here is additional information concerning the regression model:

Sb1 = 0.038                    Sb2 =0.019

R2 = 0.68                        Se = 1.63                          F-Statistic  = 32.123

Durbin-Watson (d) statistic = 0.5436

*Sb1 & Sb2 is standard error/deviation for  X1 andX2 Se is standard error for all independent variables

  1. Which of the independent variables appear to be statistically  significant (at the 0.05 significant level) in explaining the expected travel cost for accountants?. Explain.
  2. (Mr. Ghazali returns from a 200-mile trip that took him out of town for 5 days), what is the expected amount of his claim.
  3. What proportion of the total variation in expected travel cost is explained by the regression equation? Explain.
  4. In your opinion, should there any other variables be included? Explain.

Reference no: EM133130228

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