In the least-squares equation,y = a + bX,a represents
A)the coefficient of determination.
B)the level of activity.
C)the fixed component of a cost.
D)the variable cost per unit.

Question

Quizplus · Accepted Answer

In the least-squares equation, a represents the fixed component of a cost. The equation is used to estimate the relationship between two variables, where "a" represents the intercept or fixed component of the cost, while "b" represents the variable cost per unit. The coefficient of determination is used to measure how well the regression line fits the data. The level of activity is not directly related to the least-squares equation. Therefore, option C is the best choice.

In the Least-Squares Equation,y = a + BX,a Represents