Solve the Problem $\sum ( y - \hat { y } ) ^ { 2 }$

question 56

Essay

Solve the problem.
-The sum of squares of residuals $\sum ( y - \hat { y } ) ^ { 2 }$ can be used to assess the quality of a regression model. A residual is the difference between an observed y value and the value of y predicted from the model, $\hat { y }$ . The better the model, the smaller the sum of squares of residuals. For the data below find the sum of squares of residuals which results from fitting a linear model, and the sum of squares of residuals which results from fitting a power model. Which model fits better? How can you tell?
$$\begin{array} { c | c c c c c } \mathrm { x } & 1 & 2 & 3 & 4 & 5 \\\hline \mathrm { y } & 3 & 9 & 17 & 30 & 40\end{array}$$

Understand the impact of transactions on the Work in Process inventory account.

Comprehend the recording of raw material transactions and their effect on inventory accounts.

Grasp the application of standard costing in accounting for direct labor.

Understand the variance analysis in standard costing, including materials and labor variances.

---

Definitions:

After-Tax Profit

The profit a company has left after paying all its taxes.

Tax Rate

The proportion of income that the government taxes an individual or business.

Profit and Loss Statement

A financial statement that summarizes revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

Total Contribution Margin

The difference between total sales revenue and total variable costs, indicating how much revenue is available to cover fixed costs and generate profit.