Figure 3-7 The following computer printout estimated overhead costs using regression:
Please find the following statistical table
During the last accounting period 10,000 DLH were worked.
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Refer to Figure 3-7.The coefficient of determination in this model tells us that
A) the slope is 14.05.
B) the intercept is 100.41.
C) 80 percent of the variation in the overhead variable is explained by DLH.
D) the slope is significant.

Question

Figure 3-7 The following computer printout estimated overhead costs using regression:
 Please find the following statistical table
 During the last accounting period 10,000 DLH were worked.
-
Refer to Figure 3-7.The coefficient of determination in this model tells us that
A) the slope is 14.05. 
B) the intercept is 100.41. 
C) 80 percent of the variation in the overhead variable is explained by DLH. 
D) the slope is significant.

Quizplus · Accepted Answer

The coefficient of determination in this model tells us the percentage of variation in the dependent variable (overhead costs) that can be explained by the independent variable (DLH). In this case, the coefficient of determination is 0.80 or 80%, indicating that 80% of the variation in overhead costs is explained by DLH. The other answer choices are related to the slope and intercept of the regression equation and the significance of the slope, but they are not directly related to the coefficient of determination.

Figure 3-7 the Following Computer Printout Estimated Overhead Costs Using