12.1 Correlation and Regression

Question 1

A company has accumulated data for the last 24 months in order to determine if there is an independent variable that could be used to estimate shipping costs. Three possible independent variables being considered are packages shipped, miles shipped, and pounds shipped. The quantitative technique that should be used to determine whether any of these independent variables might provide a good estimate for shipping costs is

A. Flexible budgeting
B. Linear regression
C. Linear programming
D. Variable costing

Answer 1

B. Linear regression

Question 2

Regression analysis is also called

Answer 2

least-squares analysis

Question 3

The process of deriving the linear equation that describes the relationship between two (or more) variables with a nonzero coefficient of correlation

Answer 3

Regression analysis

Question 4

In the standard regression equation y=a+bx, the letter b is best described as

Answer 4

variable coefficient
Slope of the regression line

Question 5

In the standard regression equation y=a+bx, the letter a is best described as

Answer 5

The y-intercept

Question 6

In the standard regression equation y=a+bx, the letter x is best described as

Answer 6

the independent variable