Question

Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow Maintenance Machine 24 Month Cost $ 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $43,200 Hours Jan. Feb. Mar. Apr. May June July Aug. Sept. oct. Nov. Dec Sum Average Average cost per hour a (intercept) b (coefficient) Standard error of the estimate R-squared t-value for b 480 320 400 300 500 310 320 520 490 470 350 340 4,800 $ 3,600400 $9.00 684.65 7.2884 34.469 0.99724 60.105 The coefficient of determination for Armer's regression equation for the maintenance activities is Multiple Choice 24 4.469/49.515 0.99724)2 0.99724 None of these answer choices are correct square root of o. 9924

Answer 1

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