A P-Value of 89% for the Slope Coefficient in a Regression

question 82

Multiple Choice

A p-value of 89% for the slope coefficient in a regression of a cost driver against a cost indicates:

• A) The true variable costs are statistically significantly different from zero
• B) There is only an 11% chance the true variable costs are zero
• C) The relationship between the cost and the cost driver is nonlinear
• D) None of the above

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer takes ownership and responsibility for goods once they are shipped, and is responsible for freight costs and risks.

Accounts Receivable

Outstanding balances due to a company from its clients for products or services rendered but still unpaid.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the shipping costs from the point of departure.

Freight Costs

Expenses incurred by a company for transporting goods from one place to another.