Louisiana State University, Shreveport ACCOUNTING ACCOUNTING 790 Please explain how you get the answer. 1) The following excel…
The following excel printout provides information to estimate overhead costs using linear regression:
Coefficients Standard Error t-Stat P-Value Lower 95% Upper 95%
Intercept 500 1411.05 4.28 0.003 2782.09 9289.89
DLH 10 1.61 2.83 0.022 0.85 8.27
Multiple R 0.66
Adjusted R-Square 0.69
The Model explains:
a. 68% of variation in the overhead cost is explained by changes in the DLH
b. 66% of variation in the overhead cost is explained by changes in the Independent Variable.
c. 68% of variation in DLH is explained by changes in the overhead cost
d. 66% of variation in the Independent Variable is explained by changes in the overhead cost
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