The Following Are the Results of the Least Squares Regression

question 63

Essay

The following are the results of the least squares regression method which was run to separate the fixed and variable components of the Zulli Corporation's monthly factory utility costs using the number of products produced:
y = 49,222.2992 + 5.09 x
R² = .97765
a)Assume Zulli budgets production of 5,400 units in June,what should budgeted utility costs be?
b)Explain what R² means.Is this equation a good predictor of utility costs?

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Definitions:

Decision Criteria

The standards or benchmarks used to evaluate options and make choices in decision-making processes.

Fear-Of-Success Theory

A psychological theory suggesting that some individuals may have a fear or anxiety towards achieving success due to potential negative consequences or responsibilities it may bring.

TOTE Approach

A model in cognitive psychology representing the sequence of operations in problem solving: Test, Operate, Test, Exit.

Operate Phase

A stage or process in which systems, procedures, or principles are applied or enacted.