When using regression analysis to determine estimated costs, what criteria are necessary to evaluate a particular regression line?
A) Closeness to pre-analysis guess
B) Goodness of fit
C) Coefficient of determination
D) Goodness of fit AND coefficient of determination

Question

Quizplus · Accepted Answer

Both goodness of fit and coefficient of determination are necessary criteria to evaluate a regression line. Goodness of fit measures how well the regression line fits the data points and the coefficient of determination measures how much of the variability in the dependent variable can be explained by the independent variable. Therefore, both criteria should be considered when evaluating a particular regression line.

When Using Regression Analysis to Determine Estimated Costs, What Criteria