Simple regression analysis output produces a variety of statistics. Which of the following statistics best summarises how well the cost driver explains the behaviour of the cost?
A) T-statistics for alpha and beta coefficients
B) T-statistic and p-value for the alpha coefficient
C) Adjusted R-square
D) P-values for alpha and beta coefficients

Question

Quizplus · Accepted Answer

Adjusted R-square is the statistic that best summarizes how well the cost driver explains the behavior of the cost, as it adjusts for the number of predictors in the model and provides a measure of how well the independent variables explain the variation in the dependent variable.

Simple Regression Analysis Output Produces a Variety of Statistics