Burmer CoHas Accumulated Data to Use in Preparing Its Annual Profit

question 4

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 Lower 95% and Upper 95% shown in the output suggests that:

• A)We can be 95% confident that the precision of the regression equation will be within the ranges specified.
• B)We can be 95% confident that the statistical reliability of the regression equation will be within the ranges specified.
• C)We can be 95% confident that the coefficients of the dependent variable will be within the ranges specified.
• D)We can be 95% confident that the coefficients of the independent variables will be within the ranges specified.
• E)We can be 95% confident that the regression equation will be within the ranges specified.

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Definitions:

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A large retail store specializing in a particular product category, dominating the market and often driving smaller retailers out of business.

General Merchandise Store

Retail establishments offering a wide range of products from various categories including clothing, housewares, and groceries.

Value Outlet

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Focused Merchandise Stores

Retail outlets that specialize in a specific type of product or market niche, aimed at catering to specific customer needs.