A Local Parent Group Was Concerned with the Increasing School $\alpha$

question 72

Multiple Choice

A local parent group was concerned with the increasing school cost for families with school aged children.The parent group was interested in understanding the relationship between the
The academic grade level for the child and the total costs spent per child per academic year.They
Performed a multiple regression analysis using total cost as the dependent variable and academic
Year (x₁) as the independent variables.The multiple regression analysis produced the following
Tables.

Using $\alpha$ = 0.01 to test the null hypothesis H₀: $\beta$ ₁ = $\beta$ ₂ = 0,the critical F value is ____.

• A) 5.42
• B) 5.49
• C) 7.60
• D) 3.35
• E) 2.49

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Definitions:

Fixed Overhead

Costs associated with running a business that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Overhead Rate

Variable Overhead Rate is the portion of indirect manufacturing costs that varies in proportion to production volume or activity levels, such as utilities or raw materials.

Actual Production

The real quantity of goods or services produced during a specific period, as opposed to planned or projected quantities.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to a variation in produced or achieved volumes of goods.