The following computer printout estimated overhead costs using regression:
$\begin{array}{|l|l|l|l|l|l|l|l|}
\hline\text { Degrees}&&&&\text { Degrees}\
\text { of}&&&&\text { of}\
\text { Freedom } & 90 \% & 95 \% & 99 \% & \text { Freedom } & 90 \% & 95 \% & 99 \%\
\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \
\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \
\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \
\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \
\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \
\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \
\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \
\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \
\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \
\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845 \
\hline
\end{array}$ During the last accounting period 10,000 DLH were worked.
-Refer to the figure.What does the coefficient of determination in this model indicate?
A)The slope is 14.05,which is the variable costs.
B)The intercept is 100.41,which is the fixed costs.
C)Eighty percent of the variation in overhead variable is explained by DLH.
D)The slope is 14.05 and it is significant.

Question

The following computer printout estimated overhead costs using regression:
 $\begin{array}{|l|l|l|l|l|l|l|l|}
\hline\text { Degrees}&&&&\text { Degrees}\
\text {  of}&&&&\text {  of}\
\text { Freedom } & 90 \% & 95 \% & 99 \% & \text { Freedom } & 90 \% & 95 \% & 99 \%\
\hline 1 & 6.314 & 12.708 & 63.657 & 11 & 1.796 & 2.201 & 3.106 \
\hline 2 & 2.920 & 4.303 & 9.925 & 12 & 1.782 & 2.179 & 3.055 \
\hline 3 & 2.353 & 3.182 & 5.841 & 13 & 1.771 & 2.160 & 3.055 \
\hline 4 & 2.132 & 2.776 & 4.604 & 14 & 1.761 & 2.145 & 3.012 \
\hline 5 & 2.015 & 2.571 & 4.032 & 15 & 1.753 & 2.131 & 2.947 \
\hline 6 & 1.943 & 2.447 & 3.707 & 16 & 1.746 & 2.120 & 2.921 \
\hline 7 & 1.895 & 2.365 & 3.499 & 17 & 1.740 & 2.110 & 2.898 \
\hline 8 & 1.860 & 2.306 & 3.355 & 18 & 1.734 & 2.101 & 2.878 \
\hline 9 & 1.833 & 2.262 & 3.250 & 19 & 1.729 & 2.093 & 2.861 \
\hline 10 & 1.812 & 2.228 & 3.169 & 20 & 1.725 & 2.086 & 2.845 \
\hline
\end{array}$ During the last accounting period 10,000 DLH were worked.
-Refer to the figure.What does the coefficient of determination in this model indicate?
A)The slope is 14.05,which is the variable costs. 
B)The intercept is 100.41,which is the fixed costs. 
C)Eighty percent of the variation in overhead variable is explained by DLH. 
D)The slope is 14.05 and it is significant.

Quizplus · Accepted Answer

The coefficient of determination, also known as R-squared, measures the proportion of the variation in the dependent variable (in this case, overhead variable) that can be explained by the independent variable (DLH). Therefore, choice C is correct as it indicates that 80% of the variation in overhead variable is explained by DLH. Choices A, B, and D refer to other aspects of the regression model, but they are not directly related to the coefficient of determination.

The Following Computer Printout Estimated Overhead Costs Using Regression During the Last Accounting Period 10,000 DLH Were Worked