Standard error of the slope, Managerial Accounting

Std error of the slope (Sb)

Correlation coefficient measures the degree of association between two variables such as the cost and the activity level.

The standard error of ‘b’ coefficient can be expressed as follows:

40_Untitled.jpg


For calculation purposes,

354_Untitled...jpg


We can then use Sb to construct confidence intervals using t distributions such that the true variable cost, B, will be:

b – tcSb  ≤ B ≤ b + tcSb

Where b is the estimated value of B

 

 

Posted Date: 12/5/2012 6:20:36 AM | Location : United States







Related Discussions:- Standard error of the slope, Assignment Help, Ask Question on Standard error of the slope, Get Answer, Expert's Help, Standard error of the slope Discussions

Write discussion on Standard error of the slope
Your posts are moderated
Related Questions
The Braggs & Struttin' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of

Batch size of one Set up time is the amount of time needed to adjust tools and to retool for various product. Long set ups a change over time make the production of batches wit

Explain the Ratio analysis according to kosher A ratio is the relation of the amount a to another b expressed as the ratio of a to b; a: b (a is to b) or a as simple fraction i

Illustrate the General Design of Waste heat boilers The boiler system shall be made up of a fire tube type heat exchanger, a steam drum with relief valve internals, risers and

Q. What is the issue price for Bond A and B ? On December 31, 20x7, the Jill Corporation issued $20,000,000 of 15 year face value bonds. The bonds pay interest on June 30 and D

The emerging financial scenario has made a fierce competition among the companies to raise funds by innovative financial products by the capital and or money markets. Moreover sour

PERMANENT ABANDONMENT OF PREMISES A company may find it more profitable to concentrate its output in some factories by closing down others.  The decision, in this instance, is

Coolidge Company estimates that its production workers will work 125,000 direct labor hours during the upcoming period and that overhead costs will amount to $500,000. What predete

reasons for favourable or adverse variances i.e. prise usage, mix, yeild

These loans are given by the Banker for short periods for an exact activity like financing for a civil contract work. As the customer receives payment, the transaction will be repa