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forecasting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › forecasting

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 6, 2015 at 9:55 am #254428
    maan87
    Member
    • Topics: 119
    • Replies: 155
    • ☆☆☆

    Hi john sir how r u..plz help me with the following questions..

    1..A company accountant is analysing the reject rates achieved by 100 factory operatives working in identical conditions. Rejects rates, y% are found to be related to months of experience, x, by this regression equation: y= 20-0.25x.( The correlation coefficient was r = -0.9)

    Using the equation, the predicted reject rate for an operative with 12 months experience is closest to

    A..17 percent
    b..19 percent
    c..20 percent
    d..23 percent

    John sir ..the thing which is confusing me more is corelation coeffienct in ths question…ans is 17 percent but how?

    June 6, 2015 at 4:17 pm #254538
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    The correlation coefficient is not relevant.

    y = 20 – (0.25 x 12) = 17 employees

    17/100 = 17%

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