The Schmidt Company Used Regression Analysis to Predict the Annual

question 78

Multiple Choice

The Schmidt Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:
-The independent variable (activity) selected should have a high degree of correlation with the dependent variable (cost) as indicated by a coefficient of determination that is:

• A) close to -1
• B) close to +1
• C) equal to 0
• D) none of the above

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Definitions:

System of Equations

A set of equations with the same variables, where the solution must satisfy all the equations in the system simultaneously.

Method of Substitution

A technique used to solve systems of equations by solving one equation for one variable and substituting that expression into the other equation.

System of Equations

A set of equations with the same variables, which are solved together to find a common solution for those variables.

Method of Elimination

A technique used to solve systems of equations by eliminating one of the variables.