Consider the Multiple Regression Model Shown Next Between the Dependent

question 69

Multiple Choice

Consider the multiple regression model shown next between the dependent variable Y and four independent variables X₁,X₂,X₃,and X₄,which result in the following function: = 33 + 8X₁ − 6X₂ + 16X₃ + 18X₄ For this model,there were 35 observations; SSR = 1,400 and SSE = 600. Assume a 0.01 significance level.
Based on the given information,which of the following conclusions is correct?

• A)Reject the null hypothesis that X₃ = 0.
• B)Do not reject the null hypothesis that X₁ = X₂ = X₃ = X₄ = 0.
• C)Reject the null hypothesis that X₁ = 0.
• D)Reject the null hypothesis that X₁ = X₂ = X₃ = X₄ = 0.

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Definitions:

Single Overhead Rate

A method in cost accounting where a single rate is used to allocate each unit of overhead to products or cost objects.

Direct Labor Hours

The total hours worked by employees directly involved in the production process or operation of a service.

Materials Input

The raw materials, components, and supplies used in the production or manufacturing of goods.