Blaster, Inc.recently conducted a least-squares regression analysis to predict selling expenses.The company has constructed the following regression equation: Y = 329,000 + 7.80X.Which of the following statements is false if the primary cost driver is number of units sold?
A)The company anticipates $329,000 of ﬁxed selling expenses.
B)"Y" represents total selling expenses.
C)The company expects both variable and ﬁxed selling expenses.
D)For each unit sold, total selling expenses will increase by $7.80.
E)"X" represents the number of hours worked during the period.

Question

Quizplus · Accepted Answer

The regression equation indicates that "X" represents the number of units sold, not the number of hours worked.