e Q, search A budget is an expression of management\'s expectations and goals co
ID: 3177792 • Letter: E
Question
e Q, search A budget is an expression of management's expectations and goals concerning future revenues and costs. To increase their effectiveness, many budgets are sexible, including allowances for the effect of variation in uncontrolled variables. For example, the costs and revenues of many plants are greatly affected by the number of produced by the plant during the budget period, and this may be beyond a plant managers control. Standard cost accounting procedures can be used to adjust the drect-cost parts of the budget for the level of production, but it onen more difficult to handle overhead. In many cases, statistical methods are used to estimate the relationship between overhead and the level of production using historical data. As a simple example, the historical data a certain Enter the data into (y) ExCEL and analyze answer folowing tems. Production (in 10,000) units: 5 6 7 8 9 10 11 overhead costs (in $1000) 13 11.5 13 16 15.5 15.3 17.2 a) Test the hypotheses Ho: Ah o versus H. Ah o at the 5% level of significance. State the decision rule O Reject Ho if p value 0.0s. Do not reject Ho if p value s o.0s. o Reject Ho if p value c o.05. Do not reject Ho if p value 20.05 Reject Ho if p value o.025 Do not reject Ho if p value s 0.02s. Reject Ho if p value 0.025. Do not reject Ho i p value 20.025 State the appropriate test statistic name, degrees of freedom, test statistic value, and the associated p-value (Enter your degrees of freedom as a whole number, the test statistic value to three decimal places, and the p-value to four decimal places). 001226 3829 (b) Find the least-squares regression line relating overhead costs to production. (Round your MacBook ProExplanation / Answer
a)reject Ho if p value<0.05
do not reject if p vlaue >=0.5
degree of freedom =n-2=5
t stat =3.8288
and p value =0.0123
decision : rightly clicked
x y (X-Xbar)^2 (Y-Ybar)^2 (X-Xbar)(Y-Ybar) Yi' (Y-Yi')^2 5.00 13.00 9.00 2.25 14.25 12.06786 0.86889031 6.00 11.50 4.00 9.00 25.50 12.87857 1.90045918 7.00 13.00 1.00 2.25 11.25 13.68929 0.4751148 8.00 16.00 0.00 2.25 -9.75 14.5 2.25 9.00 15.50 1.00 1.00 -5.50 15.31071 0.03582908 10.00 15.30 4.00 0.64 -3.60 16.12143 0.6747449 11.00 17.20 9.00 7.29 -9.45 16.93214 0.07174745 Total 56.00 101.50 28.00 24.68 22.70 6.27678571 mean 8.00 14.50 SSx Ssy SxyRelated Questions
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