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:

Muscular Strength

The maximum amount of force a muscle or muscle group can exert in a single effort.

Running

A form of aerobic exercise that involves rapid foot movement to propel the body forward in a steady, rhythmic motion.

Exercise Shoes

Footwear designed specifically to provide support, stability, and comfort during physical activity, reducing the risk of injury.

Simulating

Imitating or replicating certain conditions or stimuli for the purpose of study, training, or experimentation.