1. If the coefficient of correlation for machine hours is higher than the coefficient of correlation for direct labor hours, then, it is more reasonable to use the direct labor hours as the basis for computing (estimating) total cost (Y=a + bx).

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Q: (ΣΥ SP --ΣΧ- SS =Ex²- SS, = EY?. SP = r3= VSS SS, n n Use this set of data to answer questions #1 -…

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