Question
A management accountant performs a linear regression of maintenance cost vs. production using a computer spreadsheet. The regression output shows an intercept value of $322,897.
A management accountant performs a linear regression of maintenance cost vs. production using a computer spreadsheet. The regression output shows an intercept value of $322,897. How should the accountant interpret this information?
Maintenance cost has an average value of $322,897.
The value of x is $322,897 when y equals zero.
The value of y is $322,897 when x equals zero.
The residual error of the regression is $322,897.
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th Edition
1118725786, 978-1118725788
