Exhibit 14-4 Regression Analysis Was Applied Between Sales Data (Y in $1,000s)

question 127

Multiple Choice

Exhibit 14-4
Regression analysis was applied between sales data (Y in $1,000s) and advertising data (x in $100s) and the following information was obtained. = 12 + 1.8 x
n = 17
SSR = 225
SSE = 75
S_b1 = 0.2683
-Refer to Exhibit 14-4. To perform an F test, the p-value is

• A)less than .01
• B)between .01 and .025
• C)between .025 and .05
• D)between .05 and 0.1

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Definitions:

Machine-Hours

A measure of the amount of time machines are operated during the production process, used for allocating costs or measuring productivity.

Markup

The additional sum included in the purchase price of products to account for overhead expenses and profit.

Variable Manufacturing Overhead

Expenses that vary with production volume, such as utilities and materials.

Job Cost

The total expense calculated for a specific job or project, including materials, labor, and overhead.