A Regression Analysis Between Weight (Y in Pounds) and Height

question 150

Multiple Choice

A regression analysis between weight (y in pounds) and height (x in inches) resulted in the following least squares line: = 120 + 5x. This implies that if the height is increased by 1 inch, the weight, on average, is expected to:

• A) increase by 1 pound
• B) decrease by 1 pound
• C) increase by 5 pounds
• D) increase by 24 pounds
• E) increase by 125 pounds

---

Definitions:

Predetermined Overhead Rate

A predetermined rate for allocating manufacturing overhead to products or job orders, established prior to the period by forecasting both overhead expenses and activity volumes.

Machine-Hours

An indicator of how much is produced or the level of activity, determined by the total hours machines run during the manufacturing process.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate overhead costs to products or job orders based on a specific activity base such as direct labor hours or machine hours.

Machine-Hours

The total hours that machinery is operating in the production process, often used as a basis for allocating costs to products.