The Following Computer Printout Estimated Overhead Costs Using Regression During the Last Accounting Period 10,000 DLH Were Worked

question 76

Multiple Choice

The following computer printout estimated overhead costs using regression:
$\begin{array}{|l|l|l|l|l|l|l|l|}\hline\text { Degrees}&&&&\text { Degrees}\\\text { of}&&&&\text { of}\\\text { Freedom } & 90 \% & 95 \% & 99 \% & \text { Freedom } & 90 \% & 95 \% & 99 \%\\\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \\\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \\\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \\\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \\\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \\\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \\\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \\\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \\\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \\\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845 \\\hline\end{array}$ During the last accounting period 10,000 DLH were worked.
-Refer to the figure.What do the hypothesis tests of the cost parameters indicate?

• A)The slope is significantly different from zero.
• B)The intercept is significantly different from zero.
• C)Both the slope and intercept are not significant.
• D)Both the slope and intercept are significant.

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Definitions:

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.

Restructuring Gain

Income recognized from the process of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or organized.

Stamping Machine

A machine used in the manufacturing process to imprint or shape items with specific designs or patterns.

Accrued Interest

Interest that has been incurred but not yet paid, typically referring to the interest on a bond since the last interest payment was made.