In Constructing a Multiple Regression Model with Two Independent Variables

question 165

True/False

In constructing a multiple regression model with two independent variables and it was known that the correlation between and y is .75, and the correlation between and y is .55. Based on this information, the regression model containing both independent variable will explain 65% of the variation in the dependent variable y.

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Definitions:

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, represented as a percentage.

Fixed Monthly Expenses

Costs that do not vary from month to month, such as rent, insurance, and salaries.

Unit Variable Cost

The cost associated with producing an additional unit of product, which includes materials, labor, and any other expenses that increase with each unit produced.

Monthly Sales

The total revenue generated from sales of goods or services within a month.