A Grass Seed Company Conducts a Study to Determine the Relationship

question 45

Multiple Choice

A grass seed company conducts a study to determine the relationship between the density of seeds planted (in pounds per 500 sq ft) and the quality of the resulting lawn.Eight similar plots of land are selected and each is planted with a particular density of seed.One month later the quality of each lawn is rated on a scale of 0 to 100.The regression analysis is given below.A 95% confidence interval for the slope of the regression line was determined to be (-1.51,10.58) .Give an interpretation of this interval.
Dependent variable is: Lawn Quality
R-squared = 36.0%
S = 9.073602 with 8 - 2 = 6 degrees of freedom

• A)Based on this regression,each additional pound of seed per 500 square feet the average lawn quality will decrease by up to 1.51 or increase by up to 10.58 points,with 95% confidence.
• B)We are 95% confident that a randomly selected plot will have a lawn quality between -1.51 and 10.58 points.
• C)We are 95% confident that each additional point on the lawn quality scale will increase the average seed density by -1.51 to 10.58 pounds per 500 square feet.
• D)Based on this regression,we are 95% confidence that the average lawn quality is between -1.51 and 10.58 points.
• E)We are 95% confident that the average lawn quality will decrease by up to 1.51 or increase by up to 10.58 points per year.

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Definitions:

Fixed Overhead Applied

The portion of the estimated fixed overhead costs charged to production over a specific period based on a predetermined rate.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, based on a planned level of activity or volume.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product or providing a service.

Adjusted Cost of Goods Sold

The cost of goods sold metric that has been modified for adjustments such as stock variations, returns, or discrepancies.