A High R²measure in Regression Analysis Is Preferred Because

question 30

Multiple Choice

A high R²measure in regression analysis is preferred because:

• A)it indicates a good fit of the regression line through the data points.
• B)it shows that a great deal of the change in the dependent variable is explained by change in the coefficient of determination.
• C)it means that the independent variable is a good predictor of the outliers.
• D)it means that the cost analyst can be relatively confident in his or her identification of the outliers.
• E)it means that the dependent variable is based on mismatched time periods.

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Definitions:

Exchange Rates

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Liability Record is a documentation or entry that reflects the obligations or debts of a company that are due to be paid to others.

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A customized contract between two parties to buy or sell an asset at a specified price on a future date.

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An accounting practice where purchases are recorded at their gross price, without deducting any discounts, which are recorded if and when they are received.