Jayson Company Used Regression Analysis to Predict the Annual Cost

question 73

Multiple Choice

Jayson Company used regression analysis to predict the annual cost of indirect materials.The results were as follows:
$\begin{array}{ll}&\text { Indirect Materials Cost }\\&\text { Explained by Units Produced }\\\text { Constant } & 14,885 \\\text { Standard error of } Y \text { estimate } & 0.90 \\\text { R-Squared } & 0.60 \\\text { No. of observations } & 22 \\\text { Degrees of freedom } & 20 \\\text { X Coefficient } & 0.70 \\\text { Standard error of coefficient } & 2.1876\end{array}$
The coefficient of determination is ________.

• A) 0.60
• B) 0.70
• C) 0.90
• D) 1.10

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Definitions:

Eddy Current

Circular induced current contrary to the main currents. Eddy currents are a source of heat and power loss in magnetically operated devices.

Hysteresis

The phenomenon in which the state of a material lags behind changes in the effect causing it, such as the lagging of magnetic flux density behind the magnetizing force.

Spike Suppression

Techniques or devices used to protect electronic circuits from sudden transient voltages, which could cause damage or malfunction.

Metal Oxide Varistor

A voltage-dependent resistor with a nonlinear variance, used to protect electrical circuits from voltage spikes.