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NEW QUESTION: 1
A company used simple regression analysis to analyze maintenance costs against machine hours (MH) for a
26-week period when the plant was in full operation. The regression yielded the following estimated cost function:
Maintenance Cost = $60 + $0.25/MH
The regression analysis also generated a coefficient of determination (R2), or goodness of fit, of 0.85. Which of the following statements regarding this regression analysis is appropriate?
A. The coefficient of determination of R2 = 0.85 indicates that the goodness of fit is poor because the value is close to the maximum value of one.
B. This regression can be used to determine the maintenance cost for any period at any activity level by substituting the machine hours in the equation.
C. The $0.25 component is the slope coefficient of the cost estimate and represents the average variable maintenance cost per machine hour.
D. The $60 component represents the best estimate of fixed maintenance costs for the company in a shutdown situation.
Answer: C
NEW QUESTION: 2
A. Option D
B. Option B
C. Option C
D. Option A
Answer: D
NEW QUESTION: 3
Employee complaints often arise from:
A. All of the above
B. Management having operating problems
C. Employees airing their grievances
D. A form of substitution for expressing their fears and frustrations concerning their personal lives
E. Poor management
F. Dissatisfaction
Answer: D
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PEGACPBA23V1 Exam Info
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