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

HELP , ) Allgood Inc. has fixed costs of $480,000. It has a unit selling pr...

) Allgood Inc. has fixed costs of $480,000. It has a unit selling price of $6, unit variable cost of $4.50, and a target net income of $1,500,000. HOW TO COMPUTE

Accepting or rejecting the offer, given a scenario when iddle capacity is l...

given a scenario when iddle capacity is less than the special order.in this case should we accept or reject the order

Controlling material flow , Controlling material flow Figure below out...

Controlling material flow Figure below outlines the progressive stages in purchasing, issuing and recording materials in a manufacturing concern. An efficient system of docume

Schedule of non-discretionary data, Schedule of Non-discretionary Data: and...

Schedule of Non-discretionary Data: and tables, in a form that is readable and readily understood.  This worksheet is to be used to identify/capture the various non-discretionar

Ordering costs-relevant costs of eoq model, Ordering Costs These are in...

Ordering Costs These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of: •    Making the purchase demand.

Determine the application of zero base budgeting, Application of zero base ...

Application of zero base budgeting In the following areas ZBB may be applied: 1) redundant schemes may be discontinued 2) identify the duplicate schemes and merge them in

Account analysis-high low method-cost estimation method, Account analysis (...

Account analysis (Inspection of accounts) method: This method requires that departmental managers and the accountant inspect each item of expenditure within the accounts for s

Operating cycle period, Period of operating cycle implies that total sum of...

Period of operating cycle implies that total sum of number of days included in the various stages of operation commencing from the purchase of raw materials and ending along with c

Explain kaizen and management, Kaizen and management Management has two...

Kaizen and management Management has two major components: 1) Maintenance 2) Improvement. The aim of  the maintenance function is to maintain current technological man

Mortgages, You want to purchase a house that costs $325,000. You have a dow...

You want to purchase a house that costs $325,000. You have a down payment of $65,000 and will take out a mortgage to make up the difference. The AMC Mortgage Corporation offers a q

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