Regression for Estimating(Quick Test)

1. Simple regression analysis uses the least-__________ method for calculating the best fitting line through the plotted points.

2. A data point that is not representative of the typical observations is referred to as an __________.

3. __________ regression analysis involves only one independent variable.

4. A cost that is partly fixed and partly variable is referred to as a mixed or __________ cost.

5. r² is known as the “__________ of fit” statistic.

6. Before applying regression analysis to a set of observations, it is wise to first __________ the data.

7. Another term for autocorrelation is __________ correlation.

8. In the equation of the line, y = a + bx, “a” refers to the amount of __________ costs.

9. In the equation of the line, y = a + bx, “b” is the __________ cost rate.

10. In the equation of the line, y = a + bx, “y” is the __________.

11. Multiple regression means there are two or more __________ variables.

12. The statistic, r, is the coefficient of __________.

13. The statistic, r², is the coefficient of __________.

14. The percentage change in the dependent variable that is explained by the change in the independent variable(s) is __________.

15. The standard error of the coefficient provides an amount for determining the range of __________.

16. Assume that a cost is estimated to be $10,500 + $14 DLH. If the equation has a coefficient of correlation of 0.8, how much of the change in the total cost is explained by the change in the number of DLHs?

17. There can be a high correlation between an independent variable and a dependent variable without the existence of a cause and effect relationship.

18. The value for the statistic, r, will always be in the range of __________.

19. When graphing a cost line, the independent variable will be referenced by the __________-axis.

20. In the equation of the line, y = a + bx, which term indicates the slope of the line?

21. The standard error of the estimate provides an amount to be used when determining the range of __________.

22. Assuming costs decrease as activity or volume is increasing, the statistic, r, will be __________.

23. Assuming costs decrease as activity or volume is increasing, the statistic, r², will be __________.

24. The cost driver in the equation y = a + bx is represented by __________.

25. In a simple regression analysis of 12 observations, the number of degrees of freedom will be __________.

26. In multiple regression, multicollinearity means you __________ be confident in the specific effect of each of the independent variables.

27. A simple regression analysis resulting in an r² of 0.85 is __________ impressive.

28. The term used in multiple regression to describe the situation when two independent variables are correlated to each other is __________.

29. If all of the plotted observation points lie on the regression line, the value of the statistic r² will be __________.

30. The situation where the cost of the independent variable in one month is correlated to the cost of the same variable in the previous month (or in the following month) is known as __________.

31. The average amount of the fixed costs occurring per period was calculated to be $__________.

32. The increase in the total amount of the mixed costs will be on average $__________ for each unit manufactured.

33. If 10,000 units were manufactured, the estimated total of the mixed costs would be $__________.

34. The range of the coefficient, when computed for a 95% confidence interval, is $__________ to $__________.

35. The range of the estimated total cost for the manufacturing of 12,000 units when a 95% confidence interval is required will be $__________ to $__________.