A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch), production plant (Kitchener and Hamilton), and production shift (day and evening).In this model, "shift" is ___.
A)a response variable
B)an independent variable
C)a quantitative variable
D)a dependent variable
E)a constant

Question

Quizplus · Accepted Answer

In the given regression model, batch size, production plant, and shift are the variables being considered. Batch size and production plant are likely independent variables and shift is also an independent variable. Shift is not a dependent variable, response variable or a constant; it is a qualitative variable which can take two values, day and evening. Therefore, the best choice is B, "an independent variable".

A Cost Accountant Is Developing a Regression Model to Predict