Burmer Co Has Accumulated Data to Use in Preparing Its Annual

question 116

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:A staff assistant has run regression analyses on the data and obtained the following output using Excel:
REGRESSION ANALYSIS
Y (Dependent) Variable: Maintenance Cost
X (Independent) Variable: Maintenance Hours
The Lower 95% and Upper 95% shown in the output suggests that:

• A) We can be 95% confident that the precision of the regression equation will be within the ranges specified.
• B) We can be 95% confident that the statistical reliability of the regression equation will be within the ranges specified.
• C) We can be 95% confident that the coefficients of the dependent variable will be within the ranges specified.
• D) We can be 95% confident that the coefficients of the independent variables will be within the ranges specified.
• E) We can be 95% confident that the regression equation will be within the ranges specified.

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Definitions:

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord that acts as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Black Bile

In ancient and medieval medicine, one of the four bodily humors believed to be associated with melancholy.

Essential Fluid

A necessary or critical bodily fluid for physiological functions, such as blood, lymph, or cerebrospinal fluid.

Trephination

An ancient medical procedure that involves drilling or scraping a hole into the human skull to treat health problems, believed to release evil spirits.