For a Particular Regression Analysis, the Following Regression Equation Is $\hat { y } = 2.12 + 0.56 x$

question 39

Essay

For a particular regression analysis, the following regression equation is obtained: $\hat { y } = 2.12 + 0.56 x$ . Furthermore, the coefficient of determination is $0.018$ . How useful would the regression equation be for making predictions? How can you tell?

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Definitions:

Factory Wages Payable

An account that represents the amount of wages owed to factory workers for work performed that has not yet been paid.

Factory Payroll

The total compensation, including wages, salaries, and benefits, paid to employees working within a manufacturing facility.

Direct Labor

Refers to the wages and benefits given to employees who are directly involved in the production of goods or services.

Overapplied Overhead

A situation where the allocated overhead cost to products or services exceeds the actual overhead costs incurred.