The Following Computer Printout Estimated Overhead Costs Using Regression $\begin{array}{cc}\text { R Square (R2) } & 0.80 \\\text { Standard Error (Se) } & 25.03 \\\text { Observations } & 17\end{array}$

question 54

Multiple Choice

The following computer printout estimated overhead costs using regression: $\begin{array}{ccccc}&\text {\(t \text { for } H(0) \) }&&&\text { Std. error}\\ \text {Parameter }& \text { Estimate}& \text { Parameter \( =0 \) }&\text {\( \operatorname{Pr} >\mathrm{t} \) }& \text {of parameter }\\\text { Intercept } & 100.41 & 4.81 & 0.0003 & 20.88 \\\text { DLH } & 14.05 & 6.78 & 0.0001 & 2.07\end{array}$

$\begin{array}{cc}\text { R Square (R2) } & 0.80 \\\text { Standard Error (Se) } & 25.03 \\\text { Observations } & 17\end{array}$
Please find the following statistical table
$\begin{array}{|c|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { degrees } \\\text { of freed om }\end{array} & 90 \% & 95 \% & \mathbf{9 9 \%} & \begin{array}{c}\text { degrees of } \\\text { freedom }\end{array} & \mathbf{9 0 \%} & \mathbf{9 5 \%} & \mathbf{9 9 \%} \\\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \\\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \\\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \\\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \\\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \\\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \\\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \\\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \\\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \\\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845\\\hline\end{array}$
During the last accounting period 10,000 DLH were worked.
The hypothesis tests of the cost parameters indicate(s) that

• A)the slope is significantly different from zero.
• B)the intercept is significantly different from zero.
• C)both the slope and intercept are not significant.
• D)both the slope and intercept are significant.

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