TABLE 16-8 The President of a Chain of Department Stores Believes That

question 124

Short Answer

TABLE 16-8
The president of a chain of department stores believes that her stores' total sales have been showing a linear trend since 1990. She uses Microsoft Excel to obtain the partial output below. The dependent variable is sales (in millions of dollars), while the independent variable is coded years, where 1990 is coded as 0, 1991 is coded as 1, etc.
SUMMARY OUTPUT
Regression Statistics

-Referring to Table 16-8, the fitted trend value (in millions of dollars) for 1995 is ________.

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Definitions:

Period

A duration of time identified for specific accounting or financial reporting purposes.

Overapplied

A situation where the overhead allocated to products is greater than the actual overhead incurred.

Underapplied

A situation where the allocated amount of manufacturing overhead costs is less than the actual overhead costs incurred.

Manufacturing Overhead

Costs related to the manufacturing process but not directly traceable to specific units produced, such as utility costs and salaries of maintenance personnel.