The Bonaduce Corporation Used Regression Analysis to Predict the Annual

question 92

Multiple Choice

The Bonaduce Corporation used regression analysis to predict the annual cost of indirect materials.The results were as follows: Indirect Materials Cost
Explained by Units Froduced
$\begin{array}{lr}\text { Constant } & \$ 21,885 \\\text { Standard error of Y estimate } & \$ 4,560 \\\text { R - squared } & 0.8232 \\\text { No. of observations } & 22 \\\text { Degrees of freedom } & 20 \\& \\\text { X coefficients) } & 7.75 \\\text { Standard error of coefficients) } & 4.4576\end{array}$ The variable cost per unit of product is _____.

• A)$4.46
• B)$0.82
• C)$2.20
• D)$7.75

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

Trade

Conducting transactions involving the exchange, sale, or purchase of goods and services by or among people and countries.

Consuming Outside

The act of purchasing and enjoying goods or services outside one’s home, such as dining at restaurants or outdoor markets.

Opportunity Cost

The sacrifice involved in not picking the subsequent preferable option at the time of decision-making.