An Assumption of Linear Regression States That for Each Value

question 81

Short Answer

An assumption of linear regression states that for each value of X, there is a group of Y values that are statistically __________________ and normally distributed about the regression line.

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Definitions:

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as rent, salaries, and insurance.

Fixed Manufacturing Cost

Expenses that do not change with the level of production, such as rent, salaries, and equipment depreciation in a manufacturing setting.

Production Volume

The amount of products a factory or plant has manufactured in a given time frame; it measures the output level of production activities.