A Regression Analysis Involved 17 Independent Variables and 697 Observations

question 71

Multiple Choice

A regression analysis involved 17 independent variables and 697 observations. The critical value of t for testing the significance of each of the independent variable's coefficients will have​

• A) ​696 degrees of freedom.
• B) ​16 degrees of freedom.
• C) 679 degrees of freedom.
• D) ​714 degrees of freedom.

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Definitions:

High-low Method

A technique used in cost accounting to determine variable and fixed costs based on the highest and lowest levels of activity.

Line of Best Fit

A straight line drawn through the center of a group of data points plotted on a scatter plot, used to estimate the trend of the data and predict future values.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead costs for administration, facilities, and security.

Cost Object

Anything for which a separate measurement of costs is desired, such as products, services, projects, or departments.