The Index of Exposure to Radioactive Waste and the Cancer

question 51

Essay

The index of exposure to radioactive waste and the cancer mortality rates (deaths per 100,000)were recorded for nine different geographic regions.Using a 1% level of significance,use the regression analysis provided below to perform the hypothesis test to determine if the index of exposure is useful as a predictor or cancer mortality rate.
Dependent variable is: Cancer Mortality Rate
R-squared = 85.8%
s = 14.00993 with 9 - 2 = 7 degrees of freedom $$\begin{array} { l l l l l } \text { Variable } & \text { Coefficient } & \text { SE(Coeff) } & \text { t-ratio } & \text { P-value } \\\text { Constant } & 114.7156 & 8.045663 & 14.25807 & 0.00000198 \\\text { Index of Exp } & 9.231456 & 1.418787 & 6.506584 & 0.000332\end{array}$$

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Definitions:

Cost Driver

A factor that causes the cost of an activity to increase or decrease, such as machine-hours, labor hours, or production volume.

Budget Variance

The difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.

Variable Overhead

Costs of production that fluctuate with the level of output, such as utility expenses and some types of labor costs, which are not directly tied to the volume of production.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular cost or expense category.