2. Prepare a multiple regression table using all three of the activities as the independent variable....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. Prepare a multiple regression table using all three of the activities as the independent variable. Using the output from the multiple regression, give the equation of the line to estimate factory cost in terms of the 3 cost drivers below the table output Also, make sure you identify which cost driver relates to X1, X2, and X3--I have done the first one for you. (excel reads left t dentify the 2 other X variables(I have identified the X1 variable for you, which will be the first column highlighted): X1 Volume of liquid produced x2 X3 Water used in hectoliters Number of Batches 3. Assuming the following level of cost-driver volume for the month, what is the estimated Cost using simple regression for each of the cost drivers and using multiple regression. Volume of liquid produced Water used Number of batches You should have 4 computations for this answer. **** I am preparing the answer using volume of liquid produced to estimate the cost, therefore, you the output tables you generated on separate worksheets from the regression tables to estimate the costs. You will not earn credit if you type only have to prepare 3 computations. 1499 10299 92 Volume of liquid produced to estimate overhead cost 80,140.42 Guidance: Remember the equation of the line is based on Y being the dependent variable which is overhead cost and we are trying to estimate that cost based on usage of the cost driver and in this example it is volume of liquid produced. I used the simple regression output to cell reference and used the intercept as the fixed cost and the X variable as the variable cost. Water used Number of Batches 81,586.02 80,821.35 Multiple regression 80.571.99 4. Using the simple and multiple regression analyses analysis you performed, what independent variable(s) would you recommend to estimate the Overhead Costs? Why? You need to provide and discuss the specific R-squared provided in your analysis for each independent variable and multiple variables. Your response must be a detailed recommendation of why you provided that recommendation and include a discussion of the R-Squared along with providing the specific R-squared results. 2. Prepare a multiple regression table using all three of the activities as the independent variable. Using the output from the multiple regression, give the equation of the line to estimate factory cost in terms of the 3 cost drivers below the table output Also, make sure you identify which cost driver relates to X1, X2, and X3--I have done the first one for you. (excel reads left t dentify the 2 other X variables(I have identified the X1 variable for you, which will be the first column highlighted): X1 Volume of liquid produced x2 X3 Water used in hectoliters Number of Batches 3. Assuming the following level of cost-driver volume for the month, what is the estimated Cost using simple regression for each of the cost drivers and using multiple regression. Volume of liquid produced Water used Number of batches You should have 4 computations for this answer. **** I am preparing the answer using volume of liquid produced to estimate the cost, therefore, you the output tables you generated on separate worksheets from the regression tables to estimate the costs. You will not earn credit if you type only have to prepare 3 computations. 1499 10299 92 Volume of liquid produced to estimate overhead cost 80,140.42 Guidance: Remember the equation of the line is based on Y being the dependent variable which is overhead cost and we are trying to estimate that cost based on usage of the cost driver and in this example it is volume of liquid produced. I used the simple regression output to cell reference and used the intercept as the fixed cost and the X variable as the variable cost. Water used Number of Batches 81,586.02 80,821.35 Multiple regression 80.571.99 4. Using the simple and multiple regression analyses analysis you performed, what independent variable(s) would you recommend to estimate the Overhead Costs? Why? You need to provide and discuss the specific R-squared provided in your analysis for each independent variable and multiple variables. Your response must be a detailed recommendation of why you provided that recommendation and include a discussion of the R-Squared along with providing the specific R-squared results.
Expert Answer:
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
Students also viewed these finance questions
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
:{"foster", "enthusiasm", "wagon", "ally", "lehigh", "programming", "dog", "cat", "Ally", "smile", "pet" }; a. Suppose you perform insertion sort in order to sort A in ascending order. How many...
-
Learning by doing is an integral part of the course experience albeit online. The intent of this assignment is for you to demonstrate your ability to apply course content. Thus in the Marketing...
-
The p.d.f. of a random variable X is f(x) = 5 for 1 x 1.2. Find the geometric mean of the continuous random variables with the given p.d.f. Compare with the expectation.
-
1. A US$2 trillion proposed spending by the U.S. President Joe Biden has delighted many in Canada who believe that a large stimulus in the U.S. will have spillover benefits for Canada. At present,...
-
Reconsider the data in the previous problem. The response measurements in the two columns were collected on two different days. Fit a new model \[ y=\theta_{3} x_{2}+\theta_{1} e^{\theta_{2}...
-
On July 1, 2014, Davidson Corporation had the following capital structure: Common stock (par $1) ... $600,000 Capital in excess of par ... 900,000 Retained earnings ...... 700,000 Treasury stock...
-
The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 3 1 , 2 0 2 4 Net sales $ 3 , 0 2 1 , 0...
-
Ms. Daniels owns all of the outstanding shares of Daniels Inc., a CCPC. The shares have a PUC of $390,000 and an adjusted cost base of $545,000. Because it has recently consolidated its operations,...
-
Three parallel-plate capacitors are separately connected to identical batteries. Capacitor 1 has a plate area \(A\) and a plate separation \(d\). Capacitor 2 has a plate area \(2 A\) and a plate...
-
Graph the lines through the given points and with the given slopes as indicated in Problems 19-30. \((2,3) ; m=0\)
-
Graph the lines through the given points and with the given slopes as indicated in Problems 19-30. \((6,3) ; m=-\frac{2}{5}\)
-
Graph the lines through the given points and with the given slopes as indicated in Problems 19-30. \((2,-3) ; m=1.5\)
-
The market price of the stock of the Bernstein Corporation is \(\$ 50\) per share and there are one million shares outstanding. Suppose that the management of this corporation is considering a rights...
-
Prepare journal entries for common stock issued above par value and draw up a balance sheet showing how these entries are reflected therein.
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
A diploid organism has a total of 14 chromosomes and about 20,000 genes per haploid genome. Approximately how many genes are in each linkage group?
-
By conducting testcrosses, researchers have found that the sweet pea plant has seven linkage groups. How many chromosomes would you expect to find in leaf cells of sweet pea plants?
-
Describe the unique features of ascomycetes that facilitate genetic analysis of these fungi.
Study smarter with the SolutionInn App