Which of the Following Statements Are Not True?
A) the Predicted

question 43

Multiple Choice

Which of the following statements are not true?

• A) The predicted value \(\hat { y } _ { i }\)
• Is the value of y that we would predict or expect when using the estimated regression line with \(x = x _ { i }\)
• B) The predicted value \(\hat { y } _ {i}\)
• Is the height of the estimated regression line above the value \(x _ {i }\)
• For which the \(i ^ { t h }\)
• Observation was made.
• C) The residual \(y _ { i } - \hat { y } _ { i }\)
• Is the difference between the observed \(y _ { i }\)
• And the predicted \(\hat { y } _ { i }\)
• D) If the residuals are all large in magnitude, then much of the variability in observed y values appears to be due to the linear relationship between x and y, whereas many small residuals suggest quite a bit of inherent variability in y relative to the amount due to the linear relation.
• E) All of the above statements are true.

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Definitions:

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated at the beginning of a period based on expected costs and activity levels.

Variable Component

A portion of a cost or expense that varies directly with the level of activity or volume, such as the amount of raw materials used in production.

Fixed Manufacturing Overhead

The set amount of costs for production that do not vary with the level of output, such as salaries of supervisors and rent of the factory building.

Budget Variance

The financial difference between the budgeted amount and the actual amount spent or received.