Which of the Following Statements Is True

question 33

Multiple Choice

Which of the following statements is true?

• A) In a simple linear regression model, if the regression slope coefficient is negative, then the standard error of the estimate will be positive.
• B) In a simple linear regression model, the regression slope coefficient will have the same sign as the correlation coefficient.
• C) If two variables are determined to be correlated, there is no reason to believe that the regression model involving the same two variables will be statistically significant.
• D) All of these.

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Definitions:

Variable Manufacturing Overhead

Costs of manufacturing that vary directly with the level of production, such as raw materials or labor costs.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as rent and salaries of managers.

Variable Overhead

Costs that change in proportion to the level of production or activity within a business.

Direct Materials

Raw materials directly used in the manufacturing of a product, which can be directly attributed to the finished product.