Consider the Following Partial Computer Output for a Multiple Regression

question 180

Multiple Choice

Consider the following partial computer output for a multiple regression model.
$$\begin{array} { l l l } \text { Predictor } & \text { Coefficient } \left( \mathrm { b } _ { \mathrm { i } } \right) & \text { Standard Dev } \left( \mathrm { s } _ { \mathrm { b } } \right) \\\text { Constant } & 99.3883 & \\\mathrm { X } 1 & - 0.007207 & 0.0031 \\\mathrm { X } 2 & 0.0011336 & 0.00122 \\\mathrm { X } 3 & 0.9324 & 0.373 \\& & \\\text { Analysis of Variance } & & \mathrm { SS } \\\text { Source } & \underline { \text { df } } & 31.308 \\\text { Regression } & 3 & 9.378 \\\text { Error (residual) } & 16 &\end{array}$$
-What is the explained variation?

• A)40.686
• B)31.308
• C)9.378
• D)9.324
• E)5.861

---

Definitions:

Cost of Goods Sold

Costs incurred directly from the production process of goods a company offers for sale.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and the cost calculated using the First-In, First-Out (FIFO) method.

FIFO Costing

First-In, First-Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.