Burmer Co Has Accumulated Data to Use in Preparing Its Annual

question 55

Multiple Choice

Burmer Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows:REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance Hours
The statistic that indicates precision of the regression is:

• A) 9982.
• B) 47.0630.
• C) 0.9981.
• D) Lower 95% and Upper 95%.
• E) Significance F (1.44E-13).

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Definitions:

Number of Workers

The total count of individuals employed or available for employment within a business or economy.

Law of Diminishing Returns

The principle that as one factor of production is increased while others are held constant, the incremental gains in output will eventually decrease.

Marginal Output

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Resource (Labor)

Human effort, both physical and mental, used in the production of goods and services.