Use the Following Regression Results to Answer the Question Below

question 124

Multiple Choice

Use the following regression results to answer the question below. Which of the following is true?

• A) x explains about 88.5 percent of the variation in y.
• B) y explains about 88.5 percent of the variation in x.
• C) x explains about 78.4 percent of the variation in y.
• D) y explains about 78.4 percent of the variation in x.

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Definitions:

Machine Hours

A measure of the time machines are in operation, used to allocate machine-related expenses to production activities.

Finishing Department

The section within a manufacturing process where products are completed, polished, or packaged.

Direct Labor Hours

The total time workers spend producing a product or service, directly associated with its manufacture.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant for allocating overhead costs to products.