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Forecasting regression

I need to verify my answers for the following problem.

Accountants at the firm Michael Vest, 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:

y = $90.00 + $50.50x1 +$0.45x2
The coefficient of correlation for the model is 0.68.

If Wanda Fennell returns from a 300-mile trip that took her out of town for 5 days, the expected amount that she would claim as expense = $ ____ (round response to 2 decimal places)

After the 300-mile and 5-day trip, Fennell submitted a reimbursement request for $685 which is different than the predicted value. The accountant should a) question or b) not question the voucher as the request is a) within expectations or b) much higher than expected.

Additional variables that could be included in the model are ( select the choice that has all the factors you would consider):

a) Gender of the executive (male/female)
b) Type of travel (air/car)
c) Dress code (formal/business casual)

The percentage of variation in the trip cost that can be explained by the model = ___% (round to 2 decimal places), which suggests that the model is a) particularly a good one or b) not particularly a good one.

Solution Preview

I need to verify my answers for the following problem.

Accountants at the firm Michael Vest, 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: ...

Solution Summary

This solution goes through forecasting regression within the context of business management.

$2.19