Question: Consider the computer output in Table, part of an analysis to explain the final cost of a project based on management's best guess of labor and materials costs at the time the bid was placed, computed from 25 recent contracts. All variables are measured in dollars.
a. What percentage of the variation in cost is explained by the information available at the time the bid is placed?
b. Approximately how closely can we predict cost if we know the other variables?
c. Find the predicted cost of a project involving $9000 in labor and $20,000 in materials.
d. Is the F test significant? What does this tell you?
e. Do materials have a significant impact on cost?
