The Regression Equation for a Categorical Variable with Four Categories

question 65

Multiple Choice

The regression equation for a categorical variable with four categories would be modeled as ________.

• A)Ŷ _i = a + b₁ D_{1 +} b₂ D_{2 +} b₃D₃
• B)Ŷ _i = a + b₁ D_{1 +} b₂ D_{2 +} b₃D_{3 +} b₄D₄
• C)Ŷ = b₁ D_{1 +} b₂ D_{2 +} b₃D₃
• D)Ŷ = b₁ D_{1 +} b₂ D_{2 +} b₃D_{3 +} b₄D₄

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Definitions:

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual time activities consume, improving accuracy in costing.

Capacity Analysis

A technique used to determine the production capacity needed by an organization to meet changing demands for its products.

Customer Service Department

A specialized division within a company that handles inquiries, resolves issues, and maintains positive relationships with customers.

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products or services based on the actual time taken to produce or provide them, rather than on estimated absorption rates.