Burmer CoHas Accumulated Data to Use in Preparing Its Annual Profit

question 19

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:
The statistic that indicates statistical reliability of the regression is:

• A).9982.
• B)47.0630.
• C)0.9981.
• D)Lower 95% and Upper 95%.
• E)F-statistic (1.44E-13).

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Definitions:

Industry

A group of companies or businesses that produce the same products or services and are involved in the same type of economic activity.

Perfect Competitor's Demand Curve

A horizontal line reflecting a perfectly elastic demand situation where the firm can sell any quantity at the prevailing market price.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely or extremely to changes in price.

Highly Inelastic

Describes demand that is hardly responsive to changes in price, typically for necessities where consumption does not decrease significantly with a price increase.