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SCENARIO 13-15
The superintendent of a school district wanted to predict the percentage of students passing a sixth- grade proficiency test.She obtained the data on percentage of students passing the proficiency test (% Passing), mean teacher salary in thousands of dollars (Salaries), and instructional spending per pupil in thousands of dollars (Spending) of 47 schools in the state.
Following is the multiple regression output with Y = % Passing as the dependent variable,
X1 =
Salaries and
X 2 = Spending:
-Referring to SCENARIO 13-15, there is sufficient evidence that both of the explanatory variables are related to the percentage of students passing the proficiency test at a 5% level of significance.
Understandability
It refers to the quality of financial information that enables users to perceive its significance.
Relevance
The importance or usefulness of information for decision-making purposes in various contexts.
Decision Usefulness
The quality of financial information that makes it valuable for users in making informed decisions.
Revenue Recognition
The accounting principle that determines the specific conditions under which revenue is recognized as earned.
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