Accountants at the GIll Co and Charted Brothers Accounting believed that several traveling executives were submitting unusually high travel vouchers upon returning 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 a number of days on the road (X1) and distance traveled (X2) in miles:
Accountants at the GIll Co and Charted Brothers Accounting believed that several traveling executives were submitting unusually high travel vouchers upon returning 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 a 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
What proportion of the total variation in expected travel cost is explained by the regression equation? Explain.
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