Figure 3-8
The following computer printout estimated overhead costs using multiple regression:
During the year the company used 1,000 setup hours and 500 parts.
-Refer to Figure 3-8. Which slope and intercept parameters are significant at the 0.05 level?
A) intercept
B) setup hours
C) number of parts
D) all of the above

Question

Figure 3-8
The following computer printout estimated overhead costs using multiple regression:
    During the year the company used 1,000 setup hours and 500 parts.
-Refer to Figure 3-8. Which slope and intercept parameters are significant at the 0.05 level?
A) intercept 
B) setup hours 
C) number of parts 
D) all of the above

Quizplus · Accepted Answer

All of the slope and intercept parameters are significant at the 0.05 level. This is because all of the p-values for the coefficients are less than 0.05, indicating that the coefficients are significant predictors of overhead costs.

Figure 3-8 The Following Computer Printout Estimated Overhead Costs Using Multiple Regression