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Unformatted text preview: er: B Diff: 3 Terms: cost estimation Objective: 8 AACSB: Reflective thinking 154) The determination is important in explaining variances in estimating equations. For a certain estimating equation, the coefficien unexplained variation was given as 26,505. The total variation was given as 46,500. What is the coefficient of t of determination for the equation? A) 0.34 B) 0.43 C) 0.57 D) 0.66 Answer: B Explanation: B) r
Diff: 2 T A AACSB: Analytical skills 155) The results were as follows: Bhaskara Corporati
Indirect Materials Cost Explained by Units Produced
on used Constant
regression Standard error of Y estimate
analysis r2
to predict Number of observations
the annual cost of X coefficient(s)
indirect Standard error of coefficient(s)
materials. The What is the linear cost function? A) $21,890
$4,560
0.7832
22
11.75
2.1876 Y = $21,890 + $11.75X B) Y = $4,560 + $5.15X C) Y = $20,100 + $4.60X D) None of these answers is correct. Answer: A Diff: 2 Terms: simple regression, cost function Objective: A AACSB: Analytical skills 156) Craig's t provided the following analysis of total manufacturing costs. Cola was to Variable
Coefficient
Standard Error
manufact
Constant
100
71.94
ure 1,000 Independent variable
200
91.74
cases of cola next r2 = 0.82 week. The accountan What is the estimated cost of producing the 1,000 cases of cola? A) tValue 1.39
2.18 $200,100 B) $142,071 C) $100,200 D) $9,000 Answer: A Explanation: A) y Diff: 2 T A AACSB: Analytical skills 157) Pam's horses. The most recent results of the two regressions are as follows: Stables used two Trainer's hours:
different Variable
Coefficient
Standard Error tValue independe Constant
$913.32
$198.12
4.61
nt Independent Variable
$20.90
$2.94
7.11
variables (trainer r2 = 0.56
hours and number of Number of horses:
horses) in Variable
Coefficient
Standard Error tValue two Constant
$4,764.50
$1,073.09
4.44
different Independent Variable
$864.98
$247.14
3.50
equations to r2 = 0.63
evaluate the cost of What is the estimated total cost for the coming yea...
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 Spring '08
 BROWN

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