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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 $60 component represents the best estimate of fixed maintenance costs for the company in a shutdown situation.
B. 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.
C. The $0.25 component is the slope coefficient of the cost estimate and represents the average variable maintenance cost per machine hour.
D. 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.
Answer: C
NEW QUESTION: 2
A. Option B
B. Option C
C. Option A
D. Option D
Answer: C
NEW QUESTION: 3
Employee complaints often arise from:
A. A form of substitution for expressing their fears and frustrations concerning their personal lives
B. Employees airing their grievances
C. Management having operating problems
D. All of the above
E. Dissatisfaction
F. Poor management
Answer: A
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