A Regression Model Examining the Amount of Distance a Long

question 163

Multiple Choice

A regression model examining the amount of distance a long distance runner runs (in miles) to
Predict the amount of fluid the runner drinks (ounces) has a slope of 4.6. Which interpretation is
Appropriate?

• A) A runner drinks a minimum of 4.6 oz.
• B) We predict 4.6 miles for every ounce that is drunk.
• C) Each mile adds 4.6 more ounces.
• D) We predict for every mile run, the runner drinks 4.6 more ounces.
• E) The correlation is needed to interpret this value.

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Definitions:

Cost Behaviour

The characteristic of costs that they either remain stable or change in response to variations in business activity levels.

Sales in Units

The total number of individual items sold by a company, as distinguished from sales measured in currency.

Indirect Costs

Expenses that are not directly traceable to a specific product or process, such as utilities or administrative salaries.

Contribution Margin

is the amount of revenue left after deducting variable costs, which can be used to cover fixed costs and contribute to profits.