Case 8-1
As the senior accountant for a manufacturing company, you have many years experience working with Excel and often provide help and tips on using Excel to the company's more junior accountants.
-After lunch, Jim in purchasing and sales accounting gives you a call. He is working with a workbook containing budgeting worksheets and charts created by a temporary employee, who is no longer working at the company. One of the line charts includes a linear trendline that looks really strange. Jim wants to know how he can verify the precision of the trendline. You tell Jim to ____.
A) display the R-squared value for the trendline; the closer the value is to 0, the more accurate the trendline
B) rechart the data and add an exponential trendline
C) display the R-squared value for the trendline; the closer the value is to 1, the more accurate the trendline
D) call the agency who provided the temporary employee and ask them to send a new temporary employee to fix the problem

Question

Quizplus · Accepted Answer

To verify the precision of a trendline in Excel, you can display the R-squared value for the trendline. The closer the value is to 1, the more accurate the trendline. In this case, Jim wants to verify the precision of the current trendline, so he should display the R-squared value and ensure that it is as close to 1 as possible. Option A is incorrect because the closer the R-squared value is to 1, not 0. Option B is not necessary as adding an exponential trendline does not verify the precision of the current linear trendline. Option D is not a practical solution for this issue.

Case 8-1 As the Senior Accountant for a Manufacturing Company, You Have