The Following Computer Printout Estimated Overhead Costs Using Multiple Regression

question 25

Multiple Choice

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


$\begin{array}{lc}\text { R Square }\left(\mathrm{R}^{2}\right) & 0.94 \\\text { Standard Error }\left(\mathrm{S}_{\mathrm{e}}\right) & 75.00 \\\text { Observations } & 160\end{array}$ 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 are significant

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Definitions:

Money Market Equilibrium

The state in which the demand for short-term funds by borrowers equals the supply of short-term funds from lenders, stabilizing interest rates in the money market.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, determined by central banks to influence money supply and lending.

U.S. Treasury Securities

Debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.

Money Supply Curve

A representation showing the relationship between the money supply and the interest rate, inverting the money demand curve's concept.