In a Simple Linear Regression Model, the Coefficient of Determination

question 118

True/False

In a simple linear regression model, the coefficient of determination not only indicates the strength of the relationship between the independent and dependent variables, but also shows whether the relationship is positive or negative.

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Definitions:

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials used.

April

The fourth month of the year in the Gregorian calendar.

Variable Overhead Efficiency Variance

The difference between actual variable overhead based on the hours worked and the standard variable overhead for the same activity level.

July

The month that is positioned seventh in the Gregorian calendar year.