Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The output of regression analysis showed the following information: Intercept Coefficient = 75,828
X Variable 1 Coefficient = 52.61
R-square = 0.9756
Should your client use this information to predict monthly operating costs?
A)No, because R-square is so high.
B)Yes, because R-square is so high.
C)Yes, because regression analysis can always be relied upon.
D)There is not enough information to make this prediction.

Question

Quizplus · Accepted Answer

A high R-square value indicates a strong relationship between the predictor variable and the response variable, so the client can use this information to predict monthly operating costs.

Your Client's Company Wants to Determine the Relationship Between Its