Question: Random company decides that the simple regression analysis could be extended to a multiple regression analysis. He finds the following results for two multiple regression

 Random company decides that the simple regression analysis could be extended

Random company decides that the simple regression analysis could be extended to a multiple regression analysis. He finds the following results for two multiple regression analyses Regression 4: PDC = a + (bix No. of POs) + (b2x No. of Ss) Value Variable Constant Independent variable 1. No. of PO. Independent variable 2. No. of $s = 0.64, Durbin-Watson statistic = 1.91 Coefficient $484,522 $126.66 $ 2,903 Standard Error $256,684 $ 57.80 $ 1,459 189 2.19 1.99 Regression 5: PDC = a + (by * No. of POs) + (b2 x No. of Ss) + (6 MPS) -Value Variable Constant Independent variable 1: No. of POs Independent variable 2. No. of Ss Independent variable 3: MPS p = 0,64: Durbin-Watson statistic = 1.91 Coefficient S483,560 $ 126,58 $ 2,901 0.00002 Standard Error $312,554 $ 63.75 $ 1,622 0.0029 1.55 1.99 1.79 0.01 R4 Write the cost equation/function/formula in accounting terminology How do you determine if each of the independent variables is a cost driver? R5 Write the cost equation/function/formula in accounting terminology -How do you determine if each of the independent variables is a cost driver Would you recommend that the company use Regression 5 to predict future costs

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