If the Absolute Value of Your Calculated T-Statistic Exceeds the Critical

question 3

Multiple Choice

If the absolute value of your calculated t-statistic exceeds the critical value from the standard normal distribution you can

• A)safely assume that your regression results are significant.
• B)reject the null hypothesis.
• C)reject the assumption that the error terms are homoskedastic.
• D)conclude that most of the actual values are very close to the regression line.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a part of the finished product.

Fixed Manufacturing Overhead

Fixed manufacturing overhead costs are those production expenses that do not change with the volume of production, such as rent and salaries.

Absorption Costing

A bookkeeping system that integrates all costs, both direct and indirect, associated with the production of a product into its final cost.

Direct Labor

The wages and salaries paid to employees who are directly involved in the production of goods or the provision of services.