Simple regression analysis output produces a variety of information and statistics. Which of the following statistics provides information for fixed costs?
A) T-statistic and p-value for the alpha coefficient
B) T-statistics for alpha and beta coefficients
C) Adjusted R-square
D) P-values for alpha and beta coefficients

Question

Quizplus · Accepted Answer

The alpha coefficient in a simple regression analysis represents the intercept of the regression line, which corresponds to the fixed costs when the independent variable is zero. Therefore, the T-statistic and p-value for the alpha coefficient provide information regarding the significance and reliability of the estimated fixed costs.

Simple Regression Analysis Output Produces a Variety of Information and Statistics