TABLE 14-16
the Superintendent of a School District

question 92

True/False

TABLE 14-16
The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily average of the percentage of students attending class (% Attendance), average teacher salary in dollars (Salaries), and instructional spending per pupil in dollars (Spending) of 47 schools in the state.
Following is the multiple regression output with Y = % Passing as the dependent variable, X₁ = % Attendance, X₂ = Salaries and
X₃ = Spending:
$\begin{array}{lr}\hline\text {Regression Statistics } \\\hline \text {Multiple R }& 0.7930 \\\text {R Square} & 0.6288 \\\text {Adjusted R Square} & 0.6029 \\\text {Standard Error }& 10.4570 \\\text {Observations }& 47 \\\hline\end{array}$


ANOVA
$\begin{array}{lccccc}\hline &\text { d f } &\text { SS }& \text { MS }& \text { F } & \text { Significance F} \\\hline \text { Regression }& 3 & 7965.08 & 2655.03 & 24.2802 & 2.3853 \mathrm{E}-09 \\\text { Residual} & 43 & 4702.02 & 109.35 & & \\\text { Total }& 46 & 12667.11 & & & \\\hline\end{array}$

$\begin{array}{lrrrrrr}\hline &\text { Coeffs} & \text { Stnd Err} &\text { t Stat} &\text { p -value }&\text { Lower 95\%} \text { Upper 95\%} \\\hline\text { Intercept }& -753.4225 & 101.1149 & -7.4511 & 2.88 \mathrm{E}-09 & -957.3401 & -549.5050 \\\%\text { Attend }& 8.5014 & 1.0771 & 7.8929 & 6.73 \mathrm{E}-10 & 6.3292 & 10.6735 \\\text { Salary} & 6.85 \mathrm{E}-07 & 0.0006 & 0.0011 & 0.9991 & -0.0013 & 0.0013 \\\text { Spending }& 0.0060 & 0.0046 & 1.2879 & 0.2047 & -0.0034 & 0.0153 \\\hline\end{array}$

-Referring to Table 14-16, there is sufficient evidence that all of the explanatory variables is related to the percentage of students passing the proficiency test.

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Definitions:

Factory Overhead

Indirect costs associated with manufacturing operations, such as utilities, maintenance, and salaries of supervisory personnel.

Direct Materials Purchased

This involves the acquisition of raw materials that are directly used in the manufacturing of a product, constituting a significant portion of the production cost.

Accounts Receivable

Amounts due to a firm from its customers for delivered services or products that remain unpaid.

Factory Overhead

Refers to the indirect manufacturing costs that are not directly tied to the production of goods, such as utilities, maintenance, and rent of the factory building.