Testing the slope, Managerial Accounting

Testing the Slope

The strong point of the relationship among the dependent variable and each of the independent variables can be determined using 3 methods:

1) Correlation coefficient (r): Correlation coefficient measures the degree of association between two variables such as the cost and the activity level.

2) Standard error of the slope (Sb):
Correlation coefficient measures the degree of association between two variables such as the cost and the activity level.

3) Z or t statistics:

If n ≥30 we use Z, if, n < 30 we use t statistics. These statistics can be used to test the hypothesis:

Ho:  B = O that is, there is no relationship between X and Y
HA:  B≠ O There is a significant relationship between X and Y

Posted Date: 12/5/2012 5:57:33 AM | Location : United States







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

Write discussion on Testing the slope
Your posts are moderated
Related Questions
Explains how activity –based techniques can be used to improve performance

Non-zero lead time (determining reorder point) This basic EOQ model assumes that the suppliers lead time is zero (i.e. goods are delivered immediately on the day the order was

The most ticklish difficulty that is faced through the finance manager is the resolve of the amount of working capital requirement at a specific level of production. To resolve thi

a)    Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, go over their significance to both the b

Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th

ABC System and service organizations The ABC system has been taken up as applied to a manufacturing organizations with the same efficiency. One basic characteristic of service

Definition of accounting Accounting is the procedure of recognizing measuring and communicating economic information to allow informed judgments and decisions by the user’s inf

M/s ABC is seeing relaxing its collection efforts. At current its sales are as Rs.40 lakhs, the ACP is here 20 days and variable cost to sales ratio is .8 and bad debts are as .05

One of the significant elements of credit management is the assessment of the credit risk of the customer.  As assessing risk two kind of errors arise that are as follows. Type

What are Selling and distribution expenses? Selling and distribution expenses incurred for the marketing of a commodity, for securing orders for the articles, dispatching goods