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

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

Answer

About 80% of the variation in the cost of performing audits is not explained by the model.

Answer

The relationship between no. of documents vouched and the cost of performing audits is not economically plausible.

Answer

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

Answer

Cost of performing audits explain for some of the variation in audit clients.

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