Question : Objective 10.A 1) The coefficient of determination important in explaining variances : 1211748

 

Objective 10.A

 

1) The coefficient of determination is important in explaining variances in estimating equations. For a certain estimating equation, the unexplained variation was given as 22,506. The total variation was given as 51,150. What is the coefficient of determination for the equation?

A) 0.34

B) 0.43

C) 0.56

D) 0.75

2) The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows:

 

Indirect Materials Cost Explained by Units Produced

Constant$15,685

Standard error of Y estimate$3,500

r20.7832

Number of observations20

X coefficient(s)10.25

Standard error of coefficient(s)2.1876

 

A) Y = $15,685 + $10.25X

B) Y = $3,500 + $5.15X

C) Y = $19,185 + $4.48X

D) Y = $12,285 + $10.25X

 

3) Corise’s Cola was to manufacture 500 cases of cola next week. The accountant provided the following analysis of total manufacturing costs.

 

VariableCoefficientStandard Errort-Value

Constant11582.731.39

Independent variable230105.502.18

r2 = 0.82

 

What is the estimated cost of producing the 500 cases of cola?

A) $115,115

B) $57,730

C) $24,380

D) $9,744

4) Midose’s Stables used two different independent variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses. The most recent results of the two regressions are as follows:

 

Trainer’s hours:

VariableCoefficientStandard Errort-Value

Constant$1,004.65$217.934.61

Independent Variable$22.99$3.237.11

r2 = 0.56

 

Number of horses:

VariableCoefficientStandard Errort-Value

Constant$5,240.95$1,180.404.44

Independent Variable$951.48$271.853.50

r2 = 0.63

 

What is the estimated total cost for the coming year if 15,000 trainer hours are incurred and the stable has 350 horses to be trained, based upon the best cost driver?

A) $96,327.90

B) $338,258.95

C) $345,854.65

D) $14,277,440.95

 

5) A major concern that arises with multiple regression is multicollinearity, which exists when ________.

A) the dependent variable is not normally distributed

B) the standard errors of the coefficients of the individual variables decrease

C) the R2 statistic is low

D) two or more independent variables are highly correlated with one another

6) In multiple regression, when two or more independent variables are highly correlated with one another, the situation is known as ________.

A) heteroscedasticity

B) homoscedasticity

C) multicollinearity

D) autocorrelation

 

7) Which of the following is the mathematical expression to calculate the coefficient of determination?

A) Coefficient of determination = 1 – (Unexplained variation / Total variation)

B) Coefficient of determination = (1 + Total variation ) / Unexplained variation)

C) Coefficient of determination = (1 – Unexplained variation ) / Total variation)

D) Coefficient of determination = 1 – Unexplained variation + Total variation)

 

8) The coefficient of determination (r2) measures the percentage of variation in X (the independent variable) explained by Y (the dependent variable).

 

9) Generally a coefficient of determination (r2) of 0.30 or higher passes a goodness of fit test.

 

10) Goodness of fit has meaning only if the relationship between the cost drivers and costs is economically plausible.

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more