In a Regression Analysis, If R² = 1, Then _____

question 46

Multiple Choice

In a regression analysis, if r² = 1, then _____.

• A) SSE must also be equal to 1
• B) SSE must be equal to 0
• C) SSE can be any positive value
• D) SSE must be negative

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product’s production, such as indirect materials and labor.

Raw Materials

Fundamental materials in their raw, altered, or partially processed forms utilized as input for manufacturing.

Overhead Rate

A ratio used to allocate indirect costs to products or services, calculated by dividing total overhead costs by an allocation base, such as direct labor hours.

Direct Labor Cost

The total expense of employing workers who are directly involved in the production of goods, including wages and salaries.