After a more sophisticated analysis of Greenscape’s costs, Drake has access to the following additional data.
Refer to the data in the previous case, as well as the additional data above.
1. Use the data for the three cost drivers to formulate a single multiple regression equation to predict total overhead cos.
2. Does the new cost model provide a more accurate estimate of total overhead cost compared to the equation formulated in the prior case? Explain your answer.
3. Consider which cost, drivers should be included in the regression equation to provide the more accurate cost model. Explain your choice.