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:

Quantity X

An undefined variable representing a certain amount or level of production, product, or other measurable factors.

Violating

The act of breaking rules or norms, or failing to comply with legal or moral standards.

Shadow Price

A monetary value assigned to currently unused resources, indicating the potential benefit if the resource were fully utilized.

Sensitivity Analysis

A method used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.