The following computer printout estimated overhead costs using regression: $\begin{array}{ccccc}
&\text {$t \text { for } H(0)$ }&&&\text { Std. error}\
\text {Parameter }& \text { Estimate}& \text { Parameter $ =0 $ }&\text {$ \operatorname{Pr} \mathrm{t} $ }& \text {of parameter }\
\text { Intercept } & 100.41 & 4.81 & 0.0003 & 20.88 \
\text { DLH } & 14.05 & 6.78 & 0.0001 & 2.07
\end{array}$

$\begin{array}{cc}
\text { R Square (R2) } & 0.80 \
\text { Standard Error (Se) } & 25.03 \
\text { Observations } & 17
\end{array}$
Please find the following statistical table
$\begin{array}{|c|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { degrees } \
\text { of freed om }
\end{array} & 90 \% & 95 \% & \mathbf{9 9 \%} & \begin{array}{c}
\text { degrees of } \
\text { freedom }
\end{array} & \mathbf{9 0 \%} & \mathbf{9 5 \%} & \mathbf{9 9 \%} \
\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \
\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \
\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \
\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \
\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \
\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \
\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \
\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \
\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \
\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845\
\hline
\end{array}$
During the last accounting period 10,000 DLH were worked.
What is the confidence interval for the predicted overhead cost rounded to the nearest whole number for a 90 percent confidence level?
A)predicted value between 140,557 and 140,644
B)predicted value between 140,644 and 140,731
C)predicted value between 87,000 and 130,500
D)none of these

Question

The following computer printout estimated overhead costs using regression: $\begin{array}{ccccc}
&\text {$t \text { for } H(0)$ }&&&\text { Std. error}\
 \text {Parameter }& \text { Estimate}& \text { Parameter $ =0 $ }&\text {$ \operatorname{Pr} >\mathrm{t} $ }& \text {of parameter }\
\text { Intercept } & 100.41 & 4.81 & 0.0003 & 20.88 \
\text { DLH } & 14.05 & 6.78 & 0.0001 & 2.07
\end{array}$

$\begin{array}{cc}
\text { R Square (R2) } & 0.80 \
\text { Standard Error (Se) } & 25.03 \
\text { Observations } & 17
\end{array}$
Please find the following statistical table
$\begin{array}{|c|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { degrees } \
\text { of freed om }
\end{array} & 90 \% & 95 \% & \mathbf{9 9 \%} & \begin{array}{c}
\text { degrees of } \
\text { freedom }
\end{array} & \mathbf{9 0 \%} & \mathbf{9 5 \%} & \mathbf{9 9 \%} \
\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \
\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \
\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \
\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \
\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \
\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \
\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \
\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \
\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \
\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845\
\hline
\end{array}$
During the last accounting period 10,000 DLH were worked.
What is the confidence interval for the predicted overhead cost rounded to the nearest whole number for a 90 percent confidence level?
A)predicted value between 140,557 and 140,644
B)predicted value between 140,644 and 140,731
C)predicted value between 87,000 and 130,500
D)none of these

Quizplus · Accepted Answer

The confidence interval for the predicted overhead cost rounded to the nearest whole number for a 90 percent confidence level is 140,557 to 140,644. This is calculated by taking the predicted value of 140,600 and adding and subtracting the margin of error, which is 43.