A Manager Wishes to Determine the Relationship Between the Number

question 17

Multiple Choice

A manager wishes to determine the relationship between the number of miles (in hundreds of miles) the manager?s sales representatives travel per month and the amount of sales (in thousands of dollars) per month.
Find the equation of the regression line for the given data. $$\begin{array} { l | c | c | c | c | c | c | c | c | c | } \text { Miles traveled, } \mathrm { x } & 2 & 3 & 10 & 7 & 8 & 15 & 3 & 1 & 11 \\\hline \text { Sales, } \mathrm { y } & 31 & 33 & 78 & 62 & 65 & 61 & 48 & 55 & 120\end{array}$$

• A) \(\hat{y}\) = 3.529x + 37.916
• B) \(\hat { \mathrm { y } }\) = 37.916x - 3.529
• C) \(\hat { \mathrm { y } }\) = 3.529x - 37.916
• D) \(\hat { y }\) = 37.916x + 3.529

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Definitions:

Direct Materials

Raw materials that can be directly identified and allocated to the production of specific goods or services.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of fully completed units for inventory valuation and cost analysis.

Direct Materials

Raw materials that can be directly associated with the production of a product.

FIFO Method

A method of inventory valuation where the first items purchased are the first to be sold or used.