If the Independent Variable Is Production Volume and the Dependent

question 27

Multiple Choice

If the independent variable is production volume and the dependent variable is total manufacturing cost, a coefficient of determination of .90 indicates

• A)90 percent of the change in manufacturing cost can be explained by the change in the production volume.
• B)90 percent of the change in volume is caused by changes in manufacturing cost.
• C)10 percent of the change in volume is caused by changes in manufacturing cost.
• D)costs will change by 90 percent of the change in volume.

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