The results of the regression analysis to estimate the cost of performing audits are as follows:

Which of the following statements represent a correct conclusion based
on the above regression analysis output?

Question

The results of the regression analysis to estimate the cost of performing audits are as follows:

Which of the following statements represent a  correct  conclusion based
on the above regression analysis output?

Answer

About 18% of the variation in the model can be explained by the cost of performing audits.

Answer

No. of auditors can be used as a cost driver of the cost of performing audits.

Answer

All of the other statements are incorrect.

Answer

The F-statistic indicates that all relationships between the cost of performing audits and cost drivers have not occurred by chance.

Answer

No. of audit clients and no. of documents vouched should both be used as cost drivers of the cost of performing audits.

Crowdly