What Common Sense Criteria Should Be Applied to Statistical Analysis

question 41

Multiple Choice

What common sense criteria should be applied to statistical analysis when evaluating cost drivers using regression analysis?

• A)goodness of fit
• B)economic plausibility
• C)the significance of the difference between the costs associated with the highest and lowest observations of the cost driver
• D)the significance of the difference between the unit values for the highest and lowest observations of the cost driver
• E)the Durbin-Watson statistic

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