Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output:Regression StatisticsMultiple R0.9798R Square0.9560Observations30CoefficientsStandard ErrorT StatP-ValueIntercept174,30260,9022.860.021Production (X)11.060.923711.970.000What total cost would Star predict for a month in which production is 2,000 units?Multiple Choice$21,419$62,749$173,282$196,422

Total Cost = Fixed Cost + (Variable Cost per unit * Production Volume) Fixed Cost = Coefficients…

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statistics Multiple R R Square 0.9798 0.9560 Observations 30 Coefficients Standard Error T Stat P-value 174,302 11.06 60,902 2.86 Intercept Production (X) 0.021 0.9237 11.97 0.000 What total cost would Star predict for a month in which production is 2,000 units? Multiple Choice $21,419 $62,749 $173,282 $196,422 O O O O

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statistics Multiple R R Square 0.9798 0.9560 Observations 30 Coefficients Standard Error T Stat P-value 174,302 11.06 60,902 2.86 Intercept Production (X) 0.021 0.9237 11.97 0.000 What total cost would Star predict for a month in which production is 2,000 units? Multiple Choice $21,419 $62,749 $173,282 $196,422 O O O O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

Question

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output:
Regression Statistics
Multiple R
0.9798
R Square
0.9560
Observations
30
Coefficients
Standard Error
T Stat
P-Value
Intercept
174,302
60,902
2.86
0.021
Production (X)
11.06
0.9237
11.97
0.000
What total cost would Star predict for a month in which production is 2,000 units?
Multiple Choice
$21,419
$62,749
$173,282
$196,422

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