THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 127

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following regression model: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + ε.Suppose that you have estimated the coefficients for the model,and obtained the partial ANOVA table shown below.
Analysis of Variance

-Test the null hypothesis H₀ : β₁ = β₂ = β₃ = 0 against H₁ : At least one β_j ≠ 0,j = 1,2,3 at the 1% significance level.

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Definitions:

Variable Overhead Efficiency Variance

is the difference between the actual variable overhead incurred and the standard cost allocated, based on the efficiency of utilizing resources.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and what the variable overhead costs should have been for the actual good units produced.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.