CHAPTER 10 DETERMINING HOW COSTS BEHAVE 10-16 (10 min.) Estimating a cost function. 1. Slope coefficient = = [pic] = [pic]= $0.35 per machine-hour Constant = Total cost – (Slope coefficient ( Quantity of cost driver) = $5,400 – ($0.35 ( 10,000) = $1,900 = $4,000 – ($0.35 ( 6,000) = $1,900 The cost function based on the two observations is Maintenance costs = $1,900 + $0.35 ( Machine-hours 2. The cost function in requirement 1 is an estimate of how
Words: 9977 - Pages: 40
ton miles scatter plot shows a more linear relationship between the two variables. Low point (3132, 1145), high point (4029, 1514) Salary=0.4114xavailable ton miles-143.50 The greatest advantage about this technique is that it only uses two data so it is convenient. The disadvantages are that the data is inefficient. This is because the data is based on cost function for only two periods, meaning it is less accurate. Simple Regression Using simpler regression to estimate the salary cost with available
Words: 834 - Pages: 4
Chapter 4 Multiple Linear Regression Section 4.1 The Model and Assumptions Objectives Participants will: understand the elements of the model understand the major assumptions of doing a regression analysis learn how to verify the assumptions understand a median split 3 The Model y o 1x1 ... p x p or in Matrix Notation Dependent Variable nx1 Unknown Parameters (p+1) x 1 Y X e Independent Variables – n x(p+1) Error – nx1 4 Questions How
Words: 1277 - Pages: 6
Prescriptive Analytics: * Prescriptive analytics automatically synthesizes big data, multiple disciplines of mathematical sciences and computational sciences, and business rules, to make predictions and then suggests decision options to take advantage of the predictions. * It is considered final phase of Analytics Some Analytics Techniques used Linear Regression In statistics, linear regression is an approach for modeling the relationship between a scalar dependent variable y and one
Words: 1288 - Pages: 6
the dependent variable Selling price, following Regression output is generated by Excel Data Analysis. SUMMARY OUTPUT | | | | | | | | | | | | | Regression Statistics | | | | | | Multiple R | 0.386986 | | | | | | R Square | 0.149758 | | | | | | Adjusted R Square | 0.123993 | | | | | | Standard Error | 3541.151 | | | | | | Observations | 35 | | | | | | | | | | | | | ANOVA | | | | | | | | df | SS | MS | F | Significance F | | Regression | 1 | 72887081 | 72887081 | 5.812481 | 0.021642 |
Words: 3107 - Pages: 13
DEA | | | Evaluating the effectiveness of any process is one of the most challenging tasks faced by managers today, especially when there are multiple inputs and outputs of the process. The difficulty is further compounded when the relationships between the inputs and the outputs are complex and involve unknown tradeoffs. The challenge is in terms of comparing the performance of a process at different locations of the organization, or evaluating how the process has been performing at a
Words: 1466 - Pages: 6
SUMMER SESSION - I , 5th EXAMINATION ( Chapter 13 ) – Part I NAME ___Due Thursday, July 14th, 2016 MULTIPLE CHOICE : ( select the most correct response ) 1. The Y-intercept ( bo ) represents the: a. estimated average Y when X = 0. b. change in estimated average Y per unit change in X. c. predicted value of Y. d. variation around the sample regression line. 2. The slope ( b1 ) represents: a. predicted value of Y when X = 0. b
Words: 1323 - Pages: 6
[pic] |Quantitative Methods – MAT 540 | |Student Course Guide | |Prerequisite: MAT 300 | |INSTRUCTIONAL MATERIAL – Required
Words: 2976 - Pages: 12
Descriptive Statistics Descriptive statistics involves organizing, summarizing and illustrating statistical data. The objective is to show important characteristics of the data without drawing any conclusions. Inferential statistics involves using a representative subset of data (a sample) in order to draw conclusions about unknown characteristics of an entire set of data (a population). Population: The entire
Words: 14529 - Pages: 59
Multiple Regression Model | Case # 28 House Prices | | A group of statistic student’s objective is to provide a business solution using statistical calculations and tools on a sample data. | | Upaiwan Porndumrongkit Ana Sanchez George Satiah Kritchapon Sopawatjirarich | 10/16/2010 | Executive Summary Summary:
Words: 3700 - Pages: 15
