The Least-Squares Regression Method

question 9

Multiple Choice

The least-squares regression method:

• A)fits a line to data by minimizing the sum of the squared errors from the line.
• B)is generally less accurate than the high-low method.
• C)can be used only if the fixed cost element is larger than the variable cost element.
• D)can be used only if the fixed cost element is smaller than the variable cost element.

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Definitions:

FICA

FICA stands for the Federal Insurance Contributions Act and refers to the taxes collected to fund Social Security and Medicare programs in the United States.

SUTA

A state-level tax paid by employers to fund the state’s unemployment insurance program.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on employers to fund state workforce agencies.

FICA

Refers to the Federal Insurance Contributions Act tax, which is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.