Exhibit 12-10
the Following Information Regarding a Dependent Variable Y

question 131

Essay

Exhibit 12-10
The following information regarding a dependent variable Y and an independent variable X is provided.
$$\begin{array} { l } \mathrm { n } = 4 \\\Sigma \mathrm { X } = 16 \\\Sigma \mathrm { Y } = 28 \\\Sigma \mathrm { Y } - { \bar { Y )} } \mathrm { X } - \bar { X } ) = - 8 \\\Sigma \mathrm { X } - \bar { X } ) ^ { 2 } = 8 \\\mathrm { SST } = 42 \\\mathrm { SSE } = 34\end{array}$$
-Assume you have noted the following prices for books and the number of pages that each book contains.
$\begin{array}{ccc}\text { Book }&\text { Pages } x \text { ) }&\text { Price y) }\\\mathrm{A} & 500 & \$ 7.00 \\\mathrm{~B} & 700 & 7.50 \\\mathrm{C} & 750 & 9.00 \\\mathrm{D} & 590 & 6.50 \\\mathrm{E} & 540 & 7.50 \\\mathrm{~F} & 650 & 7.00 \\\mathrm{G} & 480 & 450\end{array}$
a. Perform an F test and determine if the price and the number of pages of the books are related. Let ? = 0.01.
b. Perform a t test and determine if the price and the number of pages of the books are related. Let ? = 0.01.
c. Develop a 90% confidence interval for estimating the average price of books that contain 800 pages.
d. Develop a 90% confidence interval to estimate the price of a specific book that has 800 pages.

---

Definitions:

Budgeted Overhead

Budgeted overhead is the estimated total cost of all overhead expenses planned for a specific period in the future.

Controllable Overhead Variance

The difference between the actual overhead costs incurred that are directly manageable by a manager and the budgeted or standard overhead costs.

Direct Labor Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor.