SCENARIO 12-5
the Managing Partner of an Advertising Agency Believes

question 184

Short Answer

SCENARIO 12-5
The managing partner of an advertising agency believes that his company's sales are related to the industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with the following results: $\begin{array}{ll}{\text { Regression Statistics }} \\\text { Multiple R } & 0.802 \\\text { R Square } & 0.643 \\\text { Adjusted R Square } & 0.618 \\\text { Standard Error Syv } & 0.9234\\\text { Observations } & 16\end{array}$
ANOVA
$\begin{array}{lrrrcc} & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { Sig.F } \\\text { Regression } & 1 & 21.497 & 21.497 & 25.27 & 0.000 \\\text { Error } & 14 & 11.912 & 0.851 & & \\\text { Total } & 15 & 33.409 & & &\end{array}$


$\begin{array}{llll}\text { Predictor Coef } & \text { StdError } t \text { Stat } & \text { P-value }\\\hline\text { Intercept }& 3.962 & 1.440 & 2.75 & 0.016 \\\text { Industry } &0.040451 & 0.008048 & 5.03 & 0.000\end{array}$

$\text { Durbin-Watson Statistic } \quad 1.59$
-Referring to Scenario 12-5, the coefficient of determination is _.

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Definitions:

Debit Portion

The side of an accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.

Asset Account

A category in accounting ledgers that records the increases and decreases in specific assets owned by a business.

Liability Account

An account on a company's balance sheet representing debts or obligations that the company owes to others.

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and recorded, usually when it is earned and realizable.