THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 10

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose you are interested in determining the factors that influence the time required to prepare a tax return,and developed the model: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + ε,where Y is the amount of time (in minutes),X₁ is the income of the individual (in thousands of dollars),X₂ is the age of the individual,X₃ is the number of people living in the household,and X₄ is a dummy variable that takes the value 1,if the individual owns his or her own home.After interviewing 40 accountants,you get the following results:
= 17.2 + 3.8x₁ - 1.04x₂ + 2.15x₃ + 15.1x₄,
= 5.3,
= 0.13,
= 0.33,
= 1.51,
= 4.7,SSR = 164.2,SSE = 200.7,and R² = 0.45.
-Test H₀ : β₃ = 0 against H₁ : β₃ ≠ 0 and interpret your result.

---

Definitions:

Ending Inventory

The total value or quantity of goods in stock at the end of an accounting period, reflecting purchases, sales, and adjustments during the period.

Weighted-Average Method

A cost accounting method used to determine the cost of goods sold and ending inventory, calculating an average cost per unit of inventory.

Work in Process

Work in process (WIP) refers to the materials and goods that are partway through the manufacturing process but are not yet complete.

Processing Department

A division within a company or factory where a specific type of processing or work is carried out.