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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. The $60 component represents the best estimate of fixed maintenance costs for the company in a shutdown situation.
C. 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.
D. The $0.25 component is the slope coefficient of the cost estimate and represents the average variable maintenance cost per machine hour.
Answer: D

NEW QUESTION: 2

A. Option D
B. Option A
C. Option B
D. Option C
Answer: B

NEW QUESTION: 3
Employee complaints often arise from:
A. Employees airing their grievances
B. All of the above
C. A form of substitution for expressing their fears and frustrations concerning their personal lives
D. Dissatisfaction
E. Management having operating problems
F. Poor management
Answer: C


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350-701 Exam Info

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350-701 Exam Topics

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350-701 Offcial Page

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