Exhibit 15-8 The Following Estimated Regression Model Was Developed Relating Yearly Income

question 88

Multiple Choice

Exhibit 15-8
The following estimated regression model was developed relating yearly income (Y in $1,000s) of 30 individuals with their age (X₁) and their gender (X₂) (0 if male and 1 if female) . Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 15-8. The yearly income of a 24-year-old female individual is

• A)$19.80
• B)$19,800
• C)$49.80
• D)$49,800

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production process.

Absorption Cost

A cost accounting method that totals all costs associated with manufacturing a product, including all direct and indirect costs.

Direct Labor Dollars

The total amount of money spent on wages for employees who directly work on manufacturing a product or providing a service.