When Evaluating a Cost Function Estimated by Least Squares Regression,it

question 72

Multiple Choice

When evaluating a cost function estimated by least squares regression,it is important to see if the estimated cost function makes economic sense.This is assessed by ________.

• A) examining the sign of the coefficient of determination
• B) examining the sign of the fixed cost estimate
• C) examining the sign of the variable cost estimate
• D) examining the standard deviation of the cost driver

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