In a Regression Analysis for Estimating a Cost Function, the Adjusted

question 71

Multiple Choice

In a regression analysis for estimating a cost function, the adjusted R-Square statistic provides information about:

• A) The amount of variation in cost that is explained by variation in the cost driver
• B) The size of the slope coefficient
• C) Whether the cost is a fixed, variable, or mixed cost
• D) How confident we can be that the intercept or slope coefficients are different from zero

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Definitions:

Interquartile Range

A measure of statistical dispersion, representing the difference between the 25th (lower quartile) and 75th (upper quartile) percentiles of the data.

Percentile Rank

A score indicating the percentage of scores in a distribution that a particular score is equal to or higher than.

Cumulative Distribution

A method of converting a frequency distribution of scores into increasing percentages as a function of the percentage of scores counted. A bar graph is often generated by placing the class interval scores along the x-axis and the cumulative percentages along the y-axis.

Frequency Polygon

A method of converting a frequency distribution of scores into a line graph. After combining scores by class interval, the class intervals are placed along the x-axis and the frequency of scores along the y-axis.