Burmer Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows:

  

A staff assistant has run regression analyses on the data and obtained the following output using Excel:

  

The t statistic for the independent variable: 

A. Is statistically significant at less than 5% risk.

B. At 11.46, is statistically significant.

C. At 52.78, is too large to be statistically significant.

D. Lies somewhere between 6.491 and 7.063.

 
 

Transcribed Image Text:

Maintenance Machine Month Hours Cost $5,040 Jan. 620 Feb. 3,600 420 Mar. 4,320 3,380 5,220 3,550 3,640 5,360 5,110 520 390 Apr. Мay 650 June 400 July Aug. Sept. 430 680 640 Oct. 4,860 610 Nov. 3,960 460 Dec. 3,790 440 Sum $51,830 6,260 Average $ 4,319 522 Maintenance Machine Month Hours Cost $5,040 Jan. 620 Feb. 3,600 420 Mar. 4,320 3,380 5,220 3,550 3,640 5,360 5,110 520 390 Apr. Мay 650 June 400 July Aug. Sept. 430 680 640 Oct. 4,860 610 Nov. 3,960 460 Dec. 3,790 440 Sum $51,830 6,260 Average $ 4,319 522

Answer rating: 100% (QA)

Answer Date 21032019 Interpretation ... View the full answer