The Following Computer Printout Estimated Overhead Costs Using Multiple Regression

question 18

Multiple Choice

The following computer printout estimated overhead costs using multiple regression: $$\begin{array} { l c c c c } \text { Parameter } & \text { Estimate } & \begin{array} { c } \text { tfor H(0) } \\\text { Interameter } = \mathbf { 0 }\end{array} & \underline { \mathbf { P r } > \mathbf { t } } & \begin{array} { c } \text { Std. error } \\\text { of parameter }\end{array} \\\text { Intercept } & 1000 & 1.96 & 0.0250 & 510.204 \\\text { Setup hours } & 25 & 81.96 & 0.0001 & 0.305 \\\text { \# of parts } & 100 & 9.50 & 0.0001 & 10.527\end{array}$$

$\begin{array}{ll}\text { R Square (R2) } & 0.94 \\\text { Standard Error (Se) } & 75.00 \\\text { Observations } & 160\end{array}$
During the year the company used 1,000 setup hours and 500 parts.
Which slope and intercept parameters are significant at the 0.05 level?

• A)intercept
• B)setup hours
• C)number of parts
• D)all of the above

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is a major component of the carbon cycle.

Transportation Costs

Expenses involved in moving goods from one location to another, including shipping, fuel, and labor.

Fuel Consumption

The amount of fuel used by a vehicle, machinery, or facility, often measured in liters or gallons per mile or kilometer, indicating energy efficiency or operational cost.

Emissions

The release of pollutants into the air, water, or soil, often cited in discussions about environmental impact and climate change.