The Coefficient of Multiple Determination (R2), with Two Independent Variables

question 18

Multiple Choice

The coefficient of multiple determination (R2) , with two independent variables is________.

• A) the amount of variation explained by X 1 plus the amount of variation explained by X 2, after controlling for the effect of X 1 .
• B) the amount of variation explained by X 1 minus the amount of variation unexplained by X 2 .
• C) the total variation in Y minus the amount unexplained by X 1 after controlling for X 2 .
• D) the sum of all explained and unexplained variation in X 1 and X 2.

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Definitions:

Raw Materials

The basic materials and substances used in the initial stages of production to manufacture goods.

Standard Costs

Predicted costs associated with manufacturing or providing a service, used for budgetary control and performance analysis.

Cash Account

An account that tracks the flow of cash transactions, including all receipts and payments of cash.

Standard Cost Variances

Differences between the planned (standard) costs and the actual costs incurred.