What is the coefficient of determination?
A)It is a measure of the variability of actual costs around the cost-estimating equation.
B)It is used to construct probability intervals for cost estimates.
C)It is a standardized measure of the degree to which two variables move together.
D)It is a measure of the percentage variation in the dependent variable that is explained by the cost estimating equation.

Question

Quizplus · Accepted Answer

The coefficient of determination is commonly referred to as R-squared and is a statistical measure that represents the percentage of the dependent variable's variation that is explained by the independent variables in a regression model. Therefore, it measures the percentage of variation in the dependent variable that is accounted for by the regression equation. Option A is incorrect because it describes the residual standard deviation, not the coefficient of determination. Option B is incorrect because the coefficient of determination is not used to construct probability intervals. Option C describes the correlation coefficient, not the coefficient of determination.

What Is the Coefficient of Determination