True, The high low method is generally less accurate than the least squares regression method in analyzing expected cost behavior. | ||||||||||||
The high low method is generally less accurate than the least squares regression method in analyzing...
The high−low method is theoretically better than regression analysis because the high−low method uses more data points than regression analysis. True False
6-2A - High-Low Method, Scattergraph, Least-squares Regression Danny Office Supplies shows the following data related to shipping costs for the first six months of the year: Number of Shipping Packages Cost Shipped January 100 $1,200 February 120 1,300 March 1,350 April 130 1,500 May 1,400 June 90 1,100 125 1107 - Required: Using the high-low method, estimate the cost formula (write it in y=mx+b format). i. Using your answer from part a.) above, assuming in July the company expects to...
The method of least squares picks the slope and intercept of the sample regression equation by minimizing SSE. True False
The least squares method is applicable only in situations where the estimated regression line has a positive slope. True or False
PLEASE SHOW WITH ALL THE WORKING Least-Squares method for a linear regression gives following: Least-Squares method for a linear regression gives following 月 S. where g is the slope of a prediction line +Ax Show that Sn-Σ(x-x)(y--)-J:) I-1
The method of least squares Select one: a. analyzes a cost relationship by plotting the data points on a graph. is the least accurate method. C. can easily be calculated by hand. uses the results of regression analysis to construct a cost formula. Figure 3-2 Lassiter Toys, Inc. Cost of Materials $20,000 00,000 200,000 300,000 40,000 60,000 Refer to Figure 3-2. The cost behavior of the materials cost is Select one: a. variable b. discretionary C. committed d. fixed Managerial...
Question 7 2 pts Regression analysis and the high-low method often result in the same fixed and variable cost estimates because both approaches use the same data. True False Question 8 2 pts All costs behave in a linear manner. True False Question 9 2 pts The contribution margin is calculated by taking total sales revenue minus total fixed costs. True False
Employees with low-risk profiles generally have with high-risk profiles. health care costs than those higher 50% less they are equal lower 50% more Question 2 10.1 points, Health care coses only suffe TOT Hation Area True False Question 3 (0:1 points
What are the pitfalls of simple linear regression? True or False for each Lacking an awareness of the assumptions of least squares regression. Not knowing how to evaluate the assumptions of least squares regressions. Not knowing the alternatives to least squares regression if a particular assumption is violated. Using a regression model without knowledge of the subject matter. Extrapolating outside the relevant range of the X and Y variables. Concluding that a significant relationship identified always reflects a cause-and-effect relationship.
True or False: One disadvantage of the high-low method is the highest and lowest points may NOT be representative of normal operating activities. True or False: The relevant range represents those activity levels for which valid cost relationships have been observed. True or False: In general, accounting records accumulate cost information according to its behavior (i.e., variable and fixed).