Exhibit 12-4
Regression Analysis Was Applied Between Sales Data Y $\hat { Y }$

question 82

Multiple Choice

Exhibit 12-4
Regression analysis was applied between sales data Y in $1,000s) and advertising data x in $100s) and the following information was obtained.
= 12 + 1.8 x
$\hat { Y }$ n = 17
SSR = 225
SSE = 75
Sb₁ = 0.2683
-Refer to Exhibit 12-4. The t statistic for testing the significance of the slope is

• A) 1.80
• B) 1.96
• C) 6.708
• D) 0.555

---

Definitions:

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit.

Estimated

Pertaining to figures or values that are approximations or predictions based on available data or trends.

Raw Material

The basic material from which a product is made, essential for the manufacturing process.

Direct Labor Costs

The total expenditure on labor directly involved in the manufacturing process of goods or services.