Hill Top Products Has Run a Regression Analysis for Utilities

question 41

Multiple Choice

Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R²) of .86. Which of the following statements best describes the meaning of R²?

• A) 86 percent of the company's total costs are utilities costs.
• B) 14 percent of the variation in utilities costs is explained by the increase or decrease in production.
• C) 86 percent of the variation in utilities costs is explained by the increase or decrease in production.
• D) 86 percent of the company's total costs are fixed costs and the remaining 14 percent are variable costs.

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Definitions:

Eye Pressure

The fluid pressure inside the eye, clinically referred to as intraocular pressure, important for diagnosing and managing glaucoma.

Macular Degeneration

A disease characterized by the deterioration of the macula, the central portion of the retina, leading to vision loss, particularly in the elderly.

Nearsightedness

A common vision condition where close objects appear clearly, but distant ones do not because of the shape of the eye.

Farsightedness

A common vision condition in which distant objects may be seen more clearly than objects that are near.