A Range Around the Regression Line Within Which the Management

question 35

Multiple Choice

A range around the regression line within which the management accountant can rely that the actual value of the predicted cost will fall is referred to as:

• A)A relevant range.
• B)A goodness of fit.
• C)A confidence interval.
• D)An F-statistic.
• E)Degrees of freedom.

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Definitions:

Prediction Of Y

Estimating the value of the dependent variable in a regression analysis based on the independent variable(s).

Significance Level

The probability of rejecting the null hypothesis when it is actually true, used as a threshold in hypothesis testing.

Model Contribution

Refers to the impact or influence that a statistical model has in explaining the variability of the observed data.

Negative Correlation

Negative correlation indicates that as one variable increases, the other decreases, and vice versa, demonstrating an inverse relationship.