Hill Top Products Has Run a Regression Analysis Comparing Total

question 91

Multiple Choice

Hill Top Products has run a regression analysis comparing total production and utilities' costs for the past six months.The regression analysis shows an R square (R²) of .86.Which of the following statements best describes the meaning of R²?

• A) 86 per cent of the company's total costs are utilities costs.
• B) 86 per cent of the variation in utilities costs is not explained by the increase or decrease in production.
• C) 86 per cent of the variation in utilities costs is explained by the increase or decrease in production.
• D) 86 per cent of the company's total costs are fixed costs and the remaining 14 per cent are variable costs.

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Natural Response

An unlearned or innate reaction to a given stimulus, typically occurring without conscious thought.

White Rats

Commonly used laboratory animals that serve as subjects in a wide range of scientific experiments, notable for their role in psychology and biology research.

Classical Conditioning

The process of learning in which two stimuli are systematically paired together, so that a response first drawn out by the second stimulus is in time drawn out by only the first stimulus.