Use Computer Software to Obtain the Regression Equation A) $.912, .901, .010$

question 41

Multiple Choice

Use computer software to obtain the regression equation. Use the estimated equation to find the predicted value
-A study of food consumption in the country related the level of food consumed to an index of food prices and an index of personal disposable income. $\begin{array}{ccc}\hline\text { FOODCONS } & \text { INCOME } & \text { PRICE } \\\hline 98.6 & 87.4 & 108.5 \\101.2 & 97.6 & 110.1 \\102.4 & 96.7 & 110.4 \\100.9 & 98.2 & 104.3 \\102.3 & 99.8 & 107.2 \\101.5 & 100.5 & 105.8 \\101.6 & 103.2 & 107.8 \\101.6 & 107.8 & 103.4 \\99.8 & 96.6 & 102.7 \\100.3 & 88.9 & 104.1 \\97.6 & 75.1 & 99.2 \\97.2 & 76.9 & 99.7 \\97.3 & 84.6 & 102.0 \\96.0 & 90.6 & 94.3 \\99.2 & 103.1 & 97.7 \\100.3 & 105.1 & 101.1 \\100.3 & 96.4 & 102.3 \\104.1 & 104.4 & 104.4 \\105.3 & 110.7 & 108.5 \\107.6 & 127.1 & 111.3\\\hline\end{array}$

• A) \( .912, .901, .010 \)
• B) \( .867, .852, .000 \)
• C) \( .843, .799, .005 \)
• D) \( .855, .844, .002 \)

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.

Absorption Costing

A cost accounting procedure that comprises adding up all expenses involved in manufacturing—direct materials, direct labor, and manufacturing overhead, both fixed and variable—to the cost of the product.