A company is using simple linear regression to forecast maintenance costs based on machine hours. The regression output provides the following equation: Y = $5,000 + $12X, where Y is the total maintenance cost and X is machine hours. The R-squared value is 0.85.<br/><br/>If the company expects to operate 2,500 machine hours next month, which of the following statements is correct regarding the forecasted cost?

The forecasted cost is $30,000, and the R-squared indicates that 85% of the variance in machine hours is explained by maintenance costs.

The forecasted cost is $35,000, and the R-squared indicates that 85% of the variance in maintenance costs is explained by machine hours.

The forecasted cost is $35,000, and the R-squared indicates a weak correlation between machine hours and maintenance costs.

The forecasted cost is $30,000, and the R-squared indicates that 85% of the data points fall exactly on the regression line.