Figure 3-7
The following computer printout estimated overhead costs using regression:
Please find the following statistical table
During the last accounting period 10,000 DLH were worked
.
-Refer to Figure 3-7. 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

Figure 3-7
The following computer printout estimated overhead costs using regression:
   Please find the following statistical table
  During the last accounting period 10,000 DLH were worked
.
-Refer to Figure 3-7. 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 between 140,557 and 140,644. This is because the predicted value is 140,600 and the margin of error is 43.

Figure 3-7 The Following Computer Printout Estimated Overhead Costs Using Regression