Simple regression analysis provides the means to evaluate a line of regression, which is fitted to a plot of data and represents the a. way costs change with respect to dependent variable. b. way costs change with respect to both independent and dependent variables. c. variability expense with pesos of production d. way costs change with respect to independent variable.

Simple regression analysis provides the means to evaluate a line of regression, which is fitted to a plot of data and represents the a. way costs change with respect to dependent variable. b. way costs change with respect to both independent and dependent variables. c. variability expense with pesos of production d. way costs change with respect to independent variable.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section6.7: The Relationship Between Risk And Return In The Capital Asset Pricing Model

Problem 2ST

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R-squared is a measure of a. The spurious relationship between cost and activity b. The fxed cost component C The variable cost per unit activity d. How well the regression line accounts for the changes in the dependent variable
Which of the following methods of cost estimation relies on only two data points?A. the high-low methodB. account analysisC. least-squares regressionD. SWOT analysis.
The independent variable in regression analysis is: Multiple Choice Usually expressed as a range of values. The cost to be estimated. Hard to define because of its independence. The cost driver used to estimate the value of the dependent variable. Always a volume-based cost driver.
Obtaining regression estimates for cost estimation requires establishing the existence of a logical relation between activities and the cost to be estimated. Which of the following is not used to refer to these activities? Multiple Choice predictors. dependent variables. X terms. independent variables.
Plot the data and regression line for the above estimation. Evaluate the regression using the criteria of economic plausibility, goodness of fit, and slope of the regression line.
The regression analysis is normally depicted as "y = Ax+ B." What does "A" indicate in the equation? A) It is the expected change in the independent variable for a one-unit change in the dependent variable OB) It is the significance level for the test OC) It is the expected change in the dependent variable for a one-unit change in the independent variable OD) The confidence interval
In a regression analysis, the variable that is being predicted is the a. Intervening variable O b. Dependent variable С. None O d. Independent variable
_____Identifying the relationship between the activity and the costs is a key step in which of the following cost estimation methods? a) Scattergraph. b) High-low method. c) Linear regression. d) Account analysis.
Which of the following statements related to cost estimation methods is true ? a . Only high -low method has a slope and an intercept . b. The scatter - graph method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels . c. The most complex method of cost estimation is the high - low method . d. The least -squares regression method is the most accurate and reliable method to determine the cost behavior compared to scatter -graph plot and high -low methods . e. None of the given answers
When using the high-low method, should you base the high and low observations on the dependent variable or on the cost driver?
Required:Solve the variable and fixed cost component using: a) High-Low method b) Least-Squares Regression method
Which of the following statements related to cost estimation methods is true? O a. The most complex method of cost estimation is the high-low method. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. Only high-low method has a slope and an intercept. O . None of the given answers.