{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Thismeans thattotalcostversus thelevelofasingle

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 62 = 755.827 minutes = Approximately 12 hours and 36 minutes Diff: 2 Terms: learning curve, cumulative average-time learning model Objective: 6 AACSB: Analytical skills 172) The new contains the results of a simple regression program for cost estimation. The summary results of the report appear as cost follows: analyst in your Variable Coefficient Standard Error t-Value accountin Constant $35.92 $16.02 2.24 g Independent variable $563.80 $205.40 2.74 departme nt has just r2 = 0.75 received a computer- Required: generated a. What is the cost estimation equation according to the report? report that b. What is the goodness of fit? What does it tell about the estimating equation? Answer: a. y = $35.92 + $563.80X b. Goodness of fit is 0.75. It measures how well the predicted values match the actual observations. In this case, the equation passes the goodness of fit test because it is substantially above 0.30, the threshold of acceptance. Diff: 1 Terms: cost estimation, simple regression Objective: A AACSB: Use of Information Technology 173) Newton Explained by Number of Employees Company Constant used least Standard error of Y estimate squares r2 regression Number of observations analysis to obtain X coefficient(s) the Standard error of coefficient(s) following output: Required: Payroll a. What is the total fixed cost? Departm b. What is the variable cost per employee? ent Cost c. Prepare the linear cost function. $5,800 630 0.8924 20 $1.902 0.0966 d. What is the coefficient of determination? Comment on the goodness of fit. Answer: a. The constant or intercept is the total fixed cost of $5,800. b. The variable cost per employee is the X coefficient of $1.902. c. y = $5,800 + $1.902X d. The coefficient of determination is the r2 of 0.8924. This represents a very high goodness of fit. The closer to 1.0, the better the cost driver explains the cost. Therefore, the conclusion can be drawn that there is a significant relationship between the cost of the payroll department and the number of employees. Diff: 2 Terms: cost estimation, simple regres...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern