A Company Intends to Install New Management Software for Its

question 3

Multiple Choice

A company intends to install new management software for its warehouse. The software will cost $47,000 to buy and will cost an additional $148,000 to install and implement. It is anticipated that it will save the company $44,000 through reductions in staff and $69,000 in general inventory costs in the first year after installation. What is the total benefit to the company in the first year if they choose to install the software?

• A) $56,500
• B) $45,200
• C) $113,000
• D) $79,100

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Definitions:

Coefficient Of Multiple Determination

A statistical measure that represents the proportion of the variance in the dependent variable that is predictable from the independent variables.

Multiple-regression ANOVA

A statistical technique that combines aspects of multiple linear regression analysis and analysis of variance (ANOVA) to understand the relationship between several independent variables and a dependent variable.

Regression Coefficients

Values that estimate the relationship between a dependent variable and one or more independent variables in regression analysis.

Independent Predictors

Variables that can independently forecast the outcome of a dependent variable in a statistical model.