Louis Katz, a cost accountant at Papalote Plastics, Inc.(PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's).Regression analysis of the data yielded the following tables. $Louis Katz, a cost accountant at Papalote Plastics, Inc.(PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's).Regression analysis of the data yielded the following tables. \begin{array}{|c|c|c|c|c|} \hline \text { Soures } & \text { df } & \text { SS } & \text { MS } & F \\ \hline \text { Regressjum } & 1 & 9.858769 & 9.858768 & 12.2234 \\ \hline \text { Retidual } & 11 & 8.872 & 0.806545 & \\ \hline \text { Thtal } & 12 & 78.7077 & &\\ \hline \end{array} \begin{array} { | c | } \hline S _ { 8 } = 0.898 \\ \hline r ^ { 2 } = 0.526341 \\ \hline \end{array} Using \alpha = 0.05, Louis should ________________. A)increase the sample size B)suspend judgment C)not reject H0: \beta 1 = 0 D)reject H0: \beta 1 = 0 E)not reject H0: \beta 0 = 0$

\begin{array}{|c|c|c|c|c|}\hline \text { Soures } & \text { df } & \text { SS } & \text { MS } & F \\\hline \text { Regressjum } & 1 & 9.858769 & 9.858768 & 12.2234 \\\hline \text { Retidual } & 11 & 8.872 & 0.806545 & \\\hline \text { Thtal } & 12 & 78.7077 & &\\\hline\end{array}

\begin{array} { | c | } \hline S _ { 8 } = 0.898 \\\hline r ^ { 2 } = 0.526341 \\\hline\end{array}

Using

\alpha

= 0.05, Louis should ________________.
A)increase the sample size
B)suspend judgment
C)not reject H₀:

\beta

₁ = 0
D)reject H₀:

\beta

₁ = 0
E)not reject H₀:

\beta

₀ = 0

The Proportion of Variability of the Dependent Variable Accounted for or Explained

Multiple Choice

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