Use the information below to answer the following question(s).
Bernie Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:
Indirect Materials Cost Explained by Units Produced

-The coefficient of determination is
A) 22.00000.
B) 12.00000.
C) 2.350000.
D) 0.918300.
E) 0.437525.

Question

Use the information below to answer the following question(s).
Bernie Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:
Indirect Materials Cost Explained by Units Produced
 
-The coefficient of determination is
A) 22.00000. 
B) 12.00000. 
C) 2.350000. 
D) 0.918300. 
E) 0.437525.

Quizplus · Accepted Answer

The coefficient of determination is a measure of how well the regression line fits the data. It ranges between 0 and 1, with 1 indicating a perfect fit. In this case, the coefficient of determination is 0.9183, which is a relatively high value and indicates a good fit between the indirect materials cost and the units produced.

Use the Information Below to Answer the Following Question(s)