Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. An accountant for a laboratory wishes to disaggregate the business costs into the variable cost per diagnostic test and the fixed cost than must

image text in transcribed
image text in transcribed
2. An accountant for a laboratory wishes to disaggregate the business costs into the variable cost per diagnostic test and the fixed cost than must be paid irrespective of how many test had been performed. The accountant provides the following summary statistics: mean std. dev. minimum maximum Cost (f) 83,074 10,800 61,000 99,000 Tests 5,300 1,060 3,050 7,100 n = 12, correlation = 0.981. Use a simple linear regression to estimate the laboratory's fixed and variable costs. The accountant had proposed a variable cost of L8 per test when designing the budget at the beginning of the year. At the 5% significance level, assess whether or not the accountant's proposed rate was reasonable given that the residual standard error from the fitted regression model is $2, 190

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Logic For Computer Science Foundations Of Automatic Theorem Proving

Authors: Jean H Gallier

1st Edition

0486805085, 9780486805085

More Books

Students also viewed these Mathematics questions