Midgett Co

question 25

Multiple Choice

Midgett 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. The accounting staff suggested that linear regression be employed 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 are as follows:Average cost per hour ($51,840/6,270) = $8.27 (rounded to the nearest cent)
r = 0.99821
r² = 0.99780
The percent of the total variance that can be explained by the regression equation is:

• A) 99.821%.
• B) 69.670%.
• C) 81.049%
• D) 99.780%.
• E) 99.642%.

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Definitions:

Primacy Effect

The tendency to remember the first items in a series better than the middle or last items, indicating the impact of first impressions.

Statistical Regression

A statistical technique used to determine the relationships between one dependent variable and one or more independent variables.

Liberal News Media

Media outlets perceived or characterized as promoting liberal, progressive viewpoints, often emphasizing social equality, environmental issues, and reform.

Moderately Liberal

Holding political or social views that are open to reform and progress, but not to an extreme level; supporting moderate changes within the framework of the existing system.