In the Following Regression, Which Are the Two Best Predictors

question 118

Multiple Choice

In the following regression, which are the two best predictors? $$\begin{array} { l r r } \hline \text { Variables } & \text { Coefficients } & \text { Std. Error } \\\hline \text { Intercept } & 9.8080 & 16.9900 \\\text { NumCyl } & - 1.6804 & 0.5757 \\\text { HPMax } & - 0.0369 & 0.0140 \\\text { ManTran } & 0.2868 & 1.2802 \\\text { Length } & 0.1109 & 0.0601 \\\text { Wheelbase } & - 0.0701 & 0.1714 \\\text { Width } & 0.4079 & 0.2922 \\\text { RearStRm } & - 0.0085 & 0.2018 \\\text { Weight } & - 0.0025 & 0.0020 \\\text { Domestic } & - 1.2291 & 1.1391 \\\hline\end{array}$$

• A)NumCyl, HpMax
• B)Intercept, NumCyl
• C)NumCyl, Domestic
• D)ManTran, Width

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Definitions:

Variable Manufacturing Overhead

Costs in manufacturing that change with the level of production output, like utilities or raw materials.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods or services.

Predetermined Overhead Rate

A predetermined overhead rate is an estimated charge per unit of activity that is used to allocate indirect costs to products or services.

Assembly Department

A section of a manufacturing firm where products or components are assembled before final packaging or shipping.