The Coefficient of Determination Is Important in Explaining Variances in Estimating

question 131

Multiple Choice

The coefficient of determination is important in explaining variances in estimating equations. For a certain estimating equation, the unexplained variation was given as 26,505. The total variation was given as 46,500. What is the coefficient of determination for the equation?

• A)0.34
• B)0.43
• C)0.57
• D)0.66

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Definitions:

Decreasing Volume

A situation where the amount or quantity of something, such as product production or sales, is reducing over time.

North American Trend

Refers to prevailing patterns, movements, or inclinations within the North American market or cultural context.

Insourcing

Bringing previously outsourced operations back in-house, to gain better control over processes and potentially reduce costs.

Subcontracts

Contracts awarded by a primary contractor to a third party for completing part of the work required in a main contract.