Exhibit 13-1
in a Regression Model Involving 44 Observations, the Following

question 11

Multiple Choice

Exhibit 13-1
In a regression model involving 44 observations, the following estimated regression equation was obtained.
$\hat { Y }$ = 29+18X1+43X2+87X3
For this model SSR = 600 and SSE = 400.
-Refer to Exhibit 13-1. The coefficient of determination for the above model is

• A) 0.667
• B) 0.600
• C) 0.336
• D) o.400

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Definitions:

Machine Hours

A measure of the operating time of a machine, used in costing and budgeting to allocate expenses based on usage.

Units-Of-Production

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.

Depreciable Cost

The initial cost of an asset minus its salvage value, which is the amount that can be depreciated over the life of the asset.

Residual Value

The approximated price an asset will bring in at the conclusion of its operational life when it is sold.