Figure 3-7 The following computer printout estimated overhead costs using regression:
Please find the following statistical table
During the last accounting period 10,000 DLH were worked.
Refer to Figure 3-7. The coefficient of determination in this model tells us that
A) the slope is 14.05.
B) the intercept is 100.41.
C) 80 percent of the variation in the overhead variable is explained by DLH.
D) the slope is significant.

Question

Figure 3-7 The following computer printout estimated overhead costs using regression:
 Please find the following statistical table
 During the last accounting period 10,000 DLH were worked.
Refer to Figure 3-7. The coefficient of determination in this model tells us that
A) the slope is 14.05. 
B) the intercept is 100.41. 
C) 80 percent of the variation in the overhead variable is explained by DLH. 
D) the slope is significant.

Quizplus · Accepted Answer

The coefficient of determination (R²) tells us the proportion of the variation in the dependent variable (overhead costs) that can be explained by the independent variable (DLH). The given printout shows an R² value of 0.80, which means that 80% of the variation in overhead costs can be explained by DLH. The other options are not related to the coefficient of determination.

Figure 3-7 the Following Computer Printout Estimated Overhead Costs Using