Horn_CH_10TB 13

Analyticalskills 159 in

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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) t-Value 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 t-Value 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 t-Value 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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