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TABLE 14-19 The Marketing Manager for a Nationally Franchised Lawn Service Company

question 54

Multiple Choice

TABLE 14-19
The marketing manager for a nationally franchised lawn service company would like to study the characteristics that differentiate home owners who do and do not have a lawn service.A random sample of 30 home owners located in a suburban area near a large city was selected; 15 did not have a lawn service (code 0) and 15 had a lawn service (code 1) .Additional information available concerning these 30 home owners includes family income (Income,in thousands of dollars) ,lawn size (Lawn Size,in thousands of square feet) ,attitude toward outdoor recreational activities (Atitude 0 = unfavorable,1 = favorable) ,number of teenagers in the household (Teenager) ,and age of the head of the household (Age) .
The Minitab output is given below:

-Referring to Table 14-19,which of the following is the correct expression for the estimated model?

Definitions:

Fixed Overhead Items

Costs that do not change with the level of production or sales over a certain range, such as rent, salaries, and insurance.

Material Price Variances

The difference between the actual cost of materials and the standard cost multiplied by the actual quantity of materials used.

Cost Control

The process of monitoring and managing the expenses of a business to adhere to a budget or increase profitability.

Flexible Budget Cost Variance

The difference between actual costs and the costs allocated in the flexible budget, which adjusts based on actual levels of activity.