Armer Company Is Accumulating Data to Use in Preparing Its

question 29

Multiple Choice

Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow: If Armer Company uses the high-low method of analysis, the equation for the relationship between hours of activity and maintenance cost follows:

• A) y = 400 + 9.0x
• B) y = 570 + 7.5x
• C) y = 3,600 + 400x
• D) y = 570 + 9.0x
• E) None of these answer choices are correct.

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Definitions:

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Psychologists who study the developmental processes leading to behavioral adaptability and change, integrating principles of evolutionary psychology with developmental psychology.

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a developmental phase in humans lasting from birth to the onset of puberty, characterized by slow growth and extensive learning.