In Calculating the Regression Coefficients We Square the Errors of Prediction

question 4

Multiple Choice

In calculating the regression coefficients we square the errors of prediction because

• A) statisticians square everything.
• B) the sum of the errors would always be 0 for a great many lines we could draw.
• C) squaring makes the errors more striking.
• D) little errors are more important than big errors.

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Definitions:

Process Costing

A costing methodology used in industries where production is continuous, assigning costs to masses of similar units.

Materials

Raw inputs or components that are used in the production of goods or delivery of services.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, which are incurred to turn raw materials into finished goods.

Units in Process

An inventory classification representing products partially completed in the manufacturing process, often evaluated at the end of an accounting period.