MANAGEMENT ACCOUNTING 3 (318)

Question title: Regression Analysis

PART A.

Q1. What are the four criteria to evaluate the equation of the line ? Briefly explain each one .

Economic plausibility , Goodness of fit , Significance of the independent variable, and Standard error of the Estimate (SEE).

Q2. What are the benchmarks for the criteria above? Note - Some criteria have benchmarks, some do not.

Q3. What are the four assumptions that should also be evaluated when determining which model to use? Briefly explain any two assumptions.

NOTE: PLEASE ONLY ANSWER Q2 AND Q3.

Q1 already have its answer.