Testing the slope, Managerial Accounting

Assignment Help:

Testing the Slope

The strong point of the relationship among the dependent variable and each of the independent variables can be determined using 3 methods:

1) Correlation coefficient (r): Correlation coefficient measures the degree of association between two variables such as the cost and the activity level.

2) Standard error of the slope (Sb):
Correlation coefficient measures the degree of association between two variables such as the cost and the activity level.

3) Z or t statistics:

If n ≥30 we use Z, if, n < 30 we use t statistics. These statistics can be used to test the hypothesis:

Ho:  B = O that is, there is no relationship between X and Y
HA:  B≠ O There is a significant relationship between X and Y


Related Discussions:- Testing the slope

Chicken and hawk game, Chicken and Hawk (dove game) Two players meet at...

Chicken and Hawk (dove game) Two players meet at a one-lane bridge and each must choose whether to cross first or wait for the other. If both play Tough (T), they crash in the

Determine the scope and areas of cost reduction, Determine the Scope and ar...

Determine the Scope and areas of cost reduction Scope and areas of cost reduction the scope of cost reduction is so wide that it is not practicable to develop fully the areas i

Cost-volume-profit assumptions, Cost-Volume-Profit assumptions The main...

Cost-Volume-Profit assumptions The main assumptions required in C-V-P analysis are: 1) The relationship holds merely within the appropriate range. The relevant range is a ba

Difference between budgetary control and standard costing, Difference betwe...

Difference between budgetary control and standard costing Budgetary control The budgets are prepared for the concern as a whole. The budgets are fixed on the basis of p

What is meant by the term open book management, What is meant by the term O...

What is meant by the term Open Book Management? How does Open Book Management improve the organizations ability to achieve and improve results?

Calculate the direct materials costs, XYZ Industries manufactures electroni...

XYZ Industries manufactures electronic testing equipment. XYZ also installs the equipment at customers' sites and ensures that it functions smoothly. Additional information on the

Accounting rate of return - arr, ARR gives a fast estimate of a project's v...

ARR gives a fast estimate of a project's value over its useful life. ARR is derived by determining profits before taxes and interest.   ARR is an accounting technique used fo

Kinematic pair-kinematic element-resistant body , Kinematic Pair: A pair ...

Kinematic Pair: A pair is a joint of two elements which permits relative motion. The relative motion among the elements of links that built a pair is needed to be fully constrain

Public deposits, Deposits from the public are one of the important sources ...

Deposits from the public are one of the important sources of finance mainly for fine established big companies along with a vast capital base. The period of public deposits is rest

Predetermined Overhead, SSI, a meat/burger/chicken processing manufacturing...

SSI, a meat/burger/chicken processing manufacturing plant loacted in Idaho, USA prepares

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd