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

Which of the following
statements represent an incorrect 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 an  incorrect  conclusion based on the above regression
        analysis output?

Answer

No. of audit clients cannot be used as a cost driver of the cost of performing audits.

Answer

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

Answer

The F-statistic indicates that all relationships between the cost of performing audits and cost drivers have occurred by chance.

Answer

About 10% of the variation in the cost of performing audits is explained by the model.

Answer

No. of auditors cannot be used as a cost driver of the cost of performing audits.

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