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

Trade credit, It is a spontaneous source of finance that is commonly extend...

It is a spontaneous source of finance that is commonly extended to business organization depending on the custom of the competition and trade prevailing within the organization and

Variables, Variables Unrestricted variable Yi can be expressed in terms...

Variables Unrestricted variable Yi can be expressed in terms of two non-negative variables by using the substitution: Yi = Yi' - Yi'', Yi', Yi'' ≥ 0 The substitution

Motives for conducting cash balances, In this section we have discussed the...

In this section we have discussed the motives for conducting cash balances. In addition, we have discussed cash deficit or surplus situation and how it can be contained by the use

Explanation of objectives of budgetary control system, Problem 1 Manage...

Problem 1 Management accounting is sensitive to management needs; however, it assists the management and does not replace it. Write down in detail the scope of management accou

Explain out of pocket cost, Explain Out of pocket cost A cost which wil...

Explain Out of pocket cost A cost which will have to be paid to outsides as against cross such as depreciation, which do not require any cash payment this cost is relevant in t

Industrial Grinders, accepted#Regarding the Overhead costs, these are alloc...

accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;

Determine a firms earnings per share, You have been asked to determine the ...

You have been asked to determine the EPS indifference EBIT* level for your firm using the following information. Under the high-leverage alternative (a D/E ratio of 1.50), the firm

direct materials price and efficiency variances, Welcome to the Fall 2011 ...

Welcome to the Fall 2011 version of the comprehensive assignment prepared specifically for Accounting 294. Made up of 3 parts this assignment is meant to fulfil a number of obje

Time series, How to solve a Time Series problem for a five year period

How to solve a Time Series problem for a five year period

Determine the value of equipment at the current date, A company is preparin...

A company is preparing a value in use calculation for a factory building and the equipment used to make a particular product. It has prepared cash flows for the next five years fro

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