The Perize Corporation Used Regression Analysis to Predict the Annual

question 119

Multiple Choice

The Perize Corporation used regression analysis to predict the annual cost of indirect materials.The results were as follows: $\begin{array}{lr}\text { Indirect Materials Cost Explained by Units Produced }\\\text { Constant } & \$ 15,685 \\\text { Standard error of } Y \text { estimate } & \$ 3,500 \\\mathrm{r}^{2} & 0.7832 \\\text { Number of observations } & 20 \\X \text { coefficient(s) } & 10.25 \\\text { Standard error of coefficient(s) } & 2.1876\end{array}$

• A) Y = $15,685 + $10.25X
• B) Y = $3,500 + $5.15X
• C) Y = $19,185 + $4.48X
• D) Y = $12,285 + $10.25X

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Definitions:

Flexible Work Arrangements

Employment terms that allow for variations in scheduling, location, and hours worked, catering to the needs of both employer and employee.

Employee Engagement

The level of an employee’s emotional investment, commitment, and enthusiasm toward their job and company.

Markov Analysis

A statistical method used to predict the future state of a system based on its current state and probabilistic transitions.

External Environment

The outside factors and forces that can affect the operations, success, and strategy of a business or organization, including economic, legal, and socio-cultural elements.