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

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

Quizplus · Accepted Answer

The alpha coefficient represents the intercept or the constant term in a regression equation, which is the estimated fixed costs in the simple regression model. The T-statistic and p-value for alpha provide information about the significance of this coefficient in explaining the variation in the dependent variable.

Simple Regression Analysis Output Produces a Variety of Information and Statistics