Your Client's Company Wants to Determine the Relationship Between Its

question 146

Multiple Choice

Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The output of regression analysis showed the following information: Intercept Coefficient = 89,500
X Variable 1 Coefficient = 62.50
R-square = 0.9855
What is the company's monthly cost equation?

• A)y = $98.55x + $89,500
• B)y = $62.50x + $89,500
• C)y = $89,500x + $62.98
• D)y = $89,500x + $98.55

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Definitions:

Breakdown Maintenance

The practice of repairing or fixing equipment and machinery only after it has failed or broken down, as opposed to performing regular preventative maintenance.

MTBF Distribution

MTBF (Mean Time Between Failures) Distribution is a statistical representation of the expected performance or reliability of a system, indicating the average time between failures.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how spread out the values are from the mean.

6-Sigma Standards

A set of quality management techniques and tools aimed at reducing the probability of defects and variability in manufacturing and business processes to improve performance.