The Null Hypothesis for a Test of the Relative Contribution

question 59

True/False

The null hypothesis for a test of the relative contribution of two predictor variables is that the variance in X will be significantly different from the variance in Y.

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Definitions:

Net Operating Income

Net operating income reflects the profit a company makes from its operations, exclusive of taxes and interest.

Variable Costs

are expenses that change in proportion to the activity of a business, such as raw material costs, which increase with the level of production.

Direct Labor

Factory labor costs that can be easily traced to individual units of product. Also called touch labor.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating the contribution towards covering fixed costs.