21/3. Cort plc estimates overhead costs using linear regression analysis of the form y = a + bx where y represents monthly factory overhead costs and x represents mont Computed values include the following Correlation coefficient 0.8 Standard error (deviation) of the regression coefficient, b 0.18 For the regression, which of the following represents the percentage of the variance of overhead costs explained by the variance of direct labour hours?
21/3. Cort plc estimates overhead costs using linear regression analysis of the form y = a + bx where y represents monthly factory overhead costs and x represents mont Computed values include the following Correlation coefficient 0.8 Standard error (deviation) of the regression coefficient, b 0.18 For the regression, which of the following represents the percentage of the variance of overhead costs explained by the variance of direct labour hours?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 2E
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![21/3. Cort plc estimates overhead costs
using linear regression analysis of the form
y = a + bx where y represents monthly
factory overhead costs and x represents
mont
Computed values include the following
Correlation coefficient 0.8
Standard error (deviation) of the regression
coefficient, b 0.18
For the regression, which of the following
represents the percentage of the variance
of overhead costs explained by the variance
of direct labour hours?
A. 64%
B. 18%
C. 80%
D. 62%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40151cbe-ee7c-4d2b-a822-5ffe540e499d%2F636510f5-876b-4a47-b349-d7283eb2b5af%2Fh5wf2z_processed.jpeg&w=3840&q=75)
Transcribed Image Text:21/3. Cort plc estimates overhead costs
using linear regression analysis of the form
y = a + bx where y represents monthly
factory overhead costs and x represents
mont
Computed values include the following
Correlation coefficient 0.8
Standard error (deviation) of the regression
coefficient, b 0.18
For the regression, which of the following
represents the percentage of the variance
of overhead costs explained by the variance
of direct labour hours?
A. 64%
B. 18%
C. 80%
D. 62%
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