A P-Value of 1% for the Intercept Term in a Regression

question 94

Multiple Choice

A p-value of 1% for the intercept term in a regression of a cost driver against a cost indicates:

• A) The true fixed costs are statistically significantly different from zero
• B) There is only a 1% chance the true fixed costs are zero
• C) The variable costs are immaterial in this cost function
• D) Both (a) and (b)

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Definitions:

Nonverbal Communication

The transmission of information or feelings without the use of spoken language, through gestures, facial expressions, body language, tone of voice, and other cues.

Normal Tone

In medical terms, it refers to the normal tension or firmness of muscles; in communication, it implies using a standard or expected level of enthusiasm or respect.

Convergent Thinking

A cognitive process in which an individual focuses on finding a single, correct solution to a problem.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often leading to novel conclusions or unique solutions.