A Cost Function with One Independent Variable Is Estimated with Least

question 50

Multiple Choice

A cost function with one independent variable is estimated with least squares regression.The coefficient of determination for the equation is 0.50.This statistic indicates that ________.

• A) the independent variable does not explain changes in the dependent variable very well
• B) the dependent variable does not explain changes in the independent variable very well
• C) the cost estimates are correct 50 percent of the time
• D) the cost estimates are not correct 50 percent of the time

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