The Following Computer Printout Estimated Overhead Costs Using Multiple Regression

question 3

Multiple Choice

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


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

• A)Overhead = 1,000 + 25(Setup hours) + 100(# of parts).
• B)Overhead = 510 + 0.305(Setup hours) + 10.527(# of parts).
• C)Overhead = 0.98 + 40.98(Setup hours) + 4.865(# of parts).
• D)Overhead = 1,000 + 25(Setup hours).

---

Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of a country's international trade on its economic output.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues, leading to a shortfall that must be financed through borrowing.

Loanable Funds

The total amount of funds available for borrowing in the financial markets, determined by the saving behavior and the monetary policy.

Government Budget Deficit

An indication of financial health in which government spending exceeds revenue over a particular period, often leading to borrowing.