Accountants at the Tucson firm, Larry Youdelman, CPAs, 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 to number of days on the road (x₁) and distance traveled (x₂) in miles:

The coefficient of correlation computed was .68.

a) If Donna Battista returns from a 300-mile trip that took her out of town for 5 days, what is the expected amount she should claim as expenses?

b) Battista submitted a reimbursement request for $685. What should the accountant do?

c) Should any other variables be included? Which ones? Why?

 

Alpha Geek

(8)

Status NEW Posted 27 May 2017 02:05 PM My Price 7.00

-----------

Attachments

file 1495893999-1917948_1_636314199480579727_1917948.docx preview (1 words )

-----------

Not Rated(0)

• Buy Answer