TABLE 14-7
the Department Head of the Accounting Department Wanted $\text {SUMMARY OUTPUT}$

question 243

Short Answer

TABLE 14-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number
of course units (credits) and total SAT scores of each. She takes a sample of students and generates the following Microsoft
Excel output:
$\text {SUMMARY OUTPUT}$
$\begin{array}{ll}\hline \text { Regression Statistics } \\\hline \text { Multiple R }& 0.916 \\ \text { R Square} & 0.839 \\ \text { Adjusted R Square} & 0.732 \\ \text { Standard Error }& 0.24685 \\ \text { Observations} & 6 \\\hline\end{array}$

ANOVA
$\begin{array}{lccclc}\hline & \text {d f }& \text { SS }& \text { M S } & \text { F } & \text {Significance F } \\\hline \text { Regression} & 2 & 0.95219 & 0.47610 & 7.813 & 0.0646 \\ \text {Residual} & 3 & 0.18281 & 0.06094 & & \\ \text {Total} & 5 & 1.13500 & & & \\\hline\end{array}$

$\begin{array}{lrcrr}\hline & \text {Coefficients }& \text {Standard Error} & \text {t Stat } & \text { p -value} \\\hline \text { Intercept }& 4.593897 & 1.13374542 & 4.052 & 0.0271 \\ \text {Units }& -0.247270 & 0.06268485 & -3.945 & 0.0290 \\ \text {SAT Total }& 0.001443 & 0.00101241 & 1.425 & 0.2494 \\\hline\end{array}$


-Referring to Table 14-7, the value of the adjusted coefficient of multiple determination,
r²adj, is ______.

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Definitions:

Economic Order Quantity

A calculation used to determine the optimal order quantity that minimizes the total costs associated with inventory, including holding and ordering costs.

Setup Cost

The expenses incurred to prepare or configure a production process, machine, or system for a particular operation or job.

Holding Cost

The expense associated with storing unsold goods, including warehousing, insurance, and depreciation.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it depletes to a critical level.