In a regression analysis for estimating a cost function, the adjusted R-Square statistic provides information about:
A) The amount of variation in cost that is explained by variation in the cost driver
B) The size of the slope coefficient
C) Whether the cost is a fixed, variable, or mixed cost
D) How confident we can be that the intercept or slope coefficients are different from zero

Question

Quizplus · Accepted Answer

The adjusted R-Square statistic in regression analysis measures the proportion of the variance in the dependent variable (cost) that is predictable from the independent variable(s) (cost driver(s)). It adjusts for the number of predictors in the model, providing a more accurate measure of the goodness of fit than the regular R-Square when there are multiple predictors.

In a Regression Analysis for Estimating a Cost Function, the Adjusted