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

Question

Quizplus · Accepted Answer

The beta coefficient in a simple regression analysis represents the relationship between the independent variable (input) and the dependent variable (output). In this context, the beta coefficient provides information on how much the dependent variable (e.g., total cost) changes for each unit change in the independent variable (e.g., units produced). The t-statistic and p-value associated with the beta coefficient can be used to determine if the relationship between the independent and dependent variables is statistically significant. Therefore, the C option provides information for variable costs.

Simple Regression Analysis Output Produces a Variety of Statistics