Use of Simple Linear Regression Analysis Assumes That

question 8

Multiple Choice

Use of simple linear regression analysis assumes that:

• A)Variations around the line are random.
• B)Deviations around the line are normally distributed.
• C)Predictions are to be made only within the range of observed values of the predictor variable.
• D)all of the above
• E)none of the above

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Definitions:

Job P505

This likely refers to a specific job or project identifier within an organization or accounting system but without context, its specific significance can vary.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated in advance based on estimated costs and activity levels.

Direct Labor-hour

An alternative term for direct labor-hours indicating the individual hours of labor directly involved in the production process, crucial for cost calculation.

Predetermined Manufacturing Overhead

Predetermined Manufacturing Overhead is an estimated amount of manufacturing overhead costs that is assigned to each unit of product based on a predetermined rate, before actual costs are known.