Exhibit 13-2
a Regression Model Between Sales Y in $1,000) $\hat { Y }$

question 58

Multiple Choice

Exhibit 13-2
A regression model between sales Y in $1,000) , unit price X1 in dollars) and television advertisement X2 in dollars) resulted in the following function:
$\hat { Y }$ =7-3X1+5X2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 13-2. The multiple coefficient of correlation for this problem is

• A) 0.70
• B) 0.8367
• C) 0.49
• D) 0.2289

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods, such as selling, general, and administrative costs, and are expensed in the period they are incurred.

Factory Rent

The cost incurred by a business for leasing a manufacturing facility or space where production activities are carried out.

Factory Overhead

All the supplementary costs tied to manufacturing, aside from the expenses of direct materials and direct labor.

Amortization

The periodic transfer of the cost of an intangible asset to expense.