TABLE 14-12
a Weight-Loss Clinic Wants to Use $Y=\beta_{0}+\beta_{1} X_{1}+\beta_{2} X_{2}+\beta_{3} X_{3}+\beta_{4} X_{1} X_{2}+\beta_{5} X_{1} X_{3}+\varepsilon$

question 87

Multiple Choice

TABLE 14-12
A weight-loss clinic wants to use regression analysis to build a model for weight-loss of a client (measured in pounds) . Two variables thought to affect weight-loss are client's length of time on the weight loss program and time of session. These variables are described below:
Y = Weight- loss (in pounds)
^X1 ^{= Length of time in weight- loss program (in months)
X}2 ^{= 1 if morning session, 0 if not
X}3 ^{= 1 if afternoon session, 0 if not (Base level = evening session)}
Data for 12 clients on a weight- loss program at the clinic were collected and used to fit the interaction model:
$Y=\beta_{0}+\beta_{1} X_{1}+\beta_{2} X_{2}+\beta_{3} X_{3}+\beta_{4} X_{1} X_{2}+\beta_{5} X_{1} X_{3}+\varepsilon$

Partial output from Microsoft Excel follows:
$$\begin{array}{l}\text { Regression Statistics }\\\begin{array} { l c } \hline \text { Multiple R } & 0.73514 \\\text { R Square } & 0.540438 \\\text { Adjusted R Square } & 0.157469 \\\text { Standard Error } & 12.4147 \\\text { Observations } & 12 \\\hline\end{array}\end{array}$$

ANOVA
$F = 5.41118 \quad\text { Significance } F = 0.040201$

$\begin{array}{lcccr}\hline & \text {Coefficients }& \text { Standard Error }& \text { t Stat }& \text { p -value} \\\hline \text {Intercept }& 0.089744 & 14.127 & 0.0060 & 0.9951 \\ \text {Length (X1) }& 6.22538 & 2.43473 & 2.54956 & 0.0479 \\ \text {Morn Ses (X2) }& 2.217272 & 22.1416 & 0.100141 & 0.9235 \\ \text {Aft Ses (X3) } & 11.8233 & 3.1545 & 3.558901 & 0.0165 \\ \text {Length*Morn Ses} & 0.77058 & 3.562 & 0.216334 & 0.8359 \\ \text {Length * Aft Ses} & -0.54147 & 3.35988 & -0.161158 & 0.8773 \\\hline\end{array}$

-Referring to Table 14-12, which of the following statements is supported by the analysis shown?

Prepare general journal entries for production activities including raw materials, labor, and overhead costs.

Distinguish between direct and indirect costs in a manufacturing environment.

Learn the features of hybrid costing systems that combine elements of both process and job order costing.

Identify the accounts involved in the costing process for direct labor, indirect labor, direct materials, and indirect materials.

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Definitions:

Price Stability

An economic objective aiming to maintain a steady rate of inflation, allowing for predictable planning and investing.

Interest Inelastic

A situation where the demand for or the supply of a good or service does not significantly change in response to changes in interest rates.

Reverend Thomas Malthus

An 18th-century economist known for his theory on population growth, suggesting that population increases geometrically, whereas food supply increases arithmetically, leading to inevitable shortages.

Population Growth

The increase in the number of individuals in a population, commonly expressed as an annual percentage.