Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output: How much of the variation in cost is explained by production?

A)It is impossible to determine.
B)92.13%
C)95.17%
D)97.55%

Question

Star,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output: How much of the variation in cost is explained by production?

A)It is impossible to determine. 
B)92.13% 
C)95.17% 
D)97.55%

Quizplus · Accepted Answer

The coefficient of determination (R-squared) value of the regression analysis is 0.9517 or 95.17%, which represents the proportion of the variation in the cost that can be explained by the production. Therefore, the correct answer is C.

Star,Incused Excel to Run a Least-Squares Regression Analysis,which Resulted in the Following