1. To assess the ________ of estimates from regression analysis, we use the ________.

A.reliability; coefficient of determination

B.plausibility; coefficient of determination

C.plausibility; standard error of coefficient

D.objectivity; standard error of coefficient

2. When estimating a cost function, we assess reliability using ________.

A.intuition

B.goodness of fit

C.visual inspection

D.plausible relationships

3. Companies may be forced to use engineering analysis or account analysis to estimate cost functions because ________.

A.engineering analysis is the least costly method

B.historical data are not available

C.the other estimation methods are too difficult to use

D.historical data are too subjective

4. To approximate cost functions for a particular manufacturing process, engineering analysis relies on ________.

A.actual observations of the ongoing process

B.statistical analysis

C.graphs

D.mathematical analysis

5. When estimating cost functions, engineering analysis based on observations of employee behavior has the following disadvantage: ________.

A.the coefficient of determination is not reliable

B.it is less expensive than account analysis

C.it does not use all of the data points

D.the employees may have altered their normal work habits because they are being observed

6. A mixed-cost function is graphed as a ________.

A.curved line

B.line with a break for fixed costs

C.nonlinear line

D.straight-line

7. In a linear cost function, the slope measures the ________.

A.total fixed cost

B.variable cost per unit of cost driver

C.total variable cost

D.fixed cost per unit of cost driver