What Is the Coefficient of Determination

question 122

Multiple Choice

What is the coefficient of determination?

• A)It is a measure of the variability of actual costs around the cost-estimating equation.
• B)It is used to construct probability intervals for cost estimates.
• C)It is a standardized measure of the degree to which two variables move together.
• D)It is a measure of the percentage variation in the dependent variable that is explained by the cost estimating equation.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of a business, without controlling it.

Common Shares

Equity investments that represent ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Equity Method

An accounting method used to assess the profits earned through the investment in another company by updating the investment's value based on the investee's net income or loss.

Journal Entries

The record of financial transactions in an accounting system, entered as debits and credits to various accounts.