=+Bob has recently become aware of regression analysis. He estimated the following regression equation with overhead costs

Question:

=+Bob has recently become aware of regression analysis. He estimated the following regression equation with overhead costs as the dependent variable and labour-hours as the independent variable:

y = $48 271 + $3.93X Required 1 Plot the relationship between overhead costs and labour-hours. Draw the regression line and evaluate it using the criteria of economic plausibility, goodness of fit and slope of the regression line.

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

Question Posted: