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The Trivia MCQ: The individual variable coefficient's multicollinearity leads to; "Specification Analysis : Estimation Assumptions" App (iOS & Android) with answers: Increase in variance error; Decrease in variance; Increase in standard error; Decrease in standard error; for BA in business administration. Study Cost Function and Behavior Questions and Answers, Google eBook to download free sample for online business management degree programs.

## Specification Analysis : Estimation Assumptions Quiz with Answers : MCQs 63

MCQ 311:

The individual variable coefficient's multicollinearity leads to

1. decrease in variance
2. increase in variance error
3. increase in standard error
4. decrease in standard error
MCQ 312:

The constant variance is classified in assumptions testing as

1. homogenous
2. homoscedasticity
3. heteroscedasticity
4. heterogeneous
MCQ 313:

The revenue and throughput contribution is subtracted to calculate the

1. indirect labor cost of goods sold
2. direct labor cost of goods sold
3. direct material cost of goods sold
4. indirect material cost of goods sold
MCQ 314:

The production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as

1. reduced work
2. spoilage
3. rework
4. scrap
MCQ 315:

If the static budget amount is \$6200 and the flexible budget amount is \$4500, then the sales volume variance will be

1. \$6,200
2. \$1,700
3. \$17,000
4. \$4,500

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