A range around the regression line within which the management accountant can rely that the actual value of the predicted cost will fall is referred to as:
A)A relevant range.
B)A goodness of fit.
C)A confidence interval.
D)An F-statistic.
E)Degrees of freedom.

Question

Quizplus · Accepted Answer

A confidence interval is a statistical measure used to express the degree of uncertainty associated with a sample estimate of a population parameter. It provides a range of values around the regression line within which the actual value of the predicted cost is expected to fall with a certain level of confidence. This level of confidence is usually expressed as a percentage (e.g. 95% confidence interval). Therefore, the management accountant can rely on this range to make decisions and plan accordingly.

A Range Around the Regression Line Within Which the Management