A High Adjusted R-Square for the Regression of a Cost

question 110

Multiple Choice

A high adjusted R-square for the regression of a cost against a cost driver indicates:

• A) The predicted linear relationship between the cost and the cost driver is probably correct
• B) The relationship between the cost and the cost driver is probably linear
• C) The cost driver explains a high percentage of the variation of the cost
• D) The cost driver is statistically significant

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Definitions:

Specific Time Period

A distinct, defined duration marked by a start and end date or time, often used for analysis, planning, or historical reference.

Unaided Recall Test

A measure of memory where subjects are asked to remember information without cues or prompts, often used in marketing to assess brand recall.

Performance Metric

A measurable value that indicates the effectiveness, efficiency, and progress of a business or its processes towards achieving objectives.

Target Market

A specific group of consumers at whom a company aims its products and services.