TABLE 13-9
It Is Believed That, the Average Numbers of Hours

question 36

Multiple Choice

TABLE 13-9
It is believed that, the average numbers of hours spent studying per day (HOURS) during undergraduate education should have a positive linear relationship with the starting salary (SALARY, measured in thousands of dollars per month) after graduation. Given below is the Excel output from regressing starting salary on number of hours spent studying per day for a sample of 51 students. NOTE: Some of the numbers in the output are purposely erased.
$\begin{array}{lc}\text { Regression Statistics } & \\\hline \text { Multiple R } & 0.8857 \\\text { R Square } & 0.7845 \\\text { Adjusted R Square } & 0.7801 \\\text { Standard Error } & 1.3704 \\\text { Observations } & 51\end{array}$
$\text { ANOVA }$
$\begin{array}{llcc}\hline&\text { df }&\text { SS } &\text { MS }&\text {F }&\text { Significance F } \\\text { Regression } & 1 & 335.0472 & 335.0473 & 178.3859 \\\text { Residual } & & & 1.8782 & \\\text { Total } & 50 & 427.0798 & &\end{array}$
-Referring to Table 13-9, the degrees of freedom for the F test on whether HOURS affects SALARY are $$\begin{array} { l r c c c r r } & \text { Coefficients } & \text { Standaad Error } &t \text { Stat } & p \text {-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & - 1.8940 & 0.4018 & - 4.7134 & 2.051 \mathrm { E } - 05 & - 2.7015 & - 1.0865 \\\text { Hours } & 0.9795 & 0.0733 & 13.3561 & 5.944 \mathrm { E } - 18 & 0.8321 & 1.1269 \\\hline\end{array}$$

• A) 50, 1.
• B) 1, 50.
• C) 49, 1.
• D) 1, 49.

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Definitions:

Factory Overhead

Indirect manufacturing costs that cannot be directly attributed to specific units produced, such as utility costs, maintenance, and salaries of non-direct labor.

Activity-based Costing

A costing methodology that assigns costs to products or services based on the activities that go into making them, aiming to provide more accurate product costs.

Service Quality

The evaluation of how well a delivered service matches the customer's expectations, often a key factor in customer satisfaction and loyalty.

Factory Overhead

All manufacturing costs that are not directly associated with specific product units, including maintenance, utilities, and equipment depreciation.