Question 5 (of 30) value 3.33 points MC Qu. 54 A manager uses regression to expr

Question

Question 5 (of 30) value 3.33 points MC Qu. 54 A manager uses regression to express... A manager uses regression to express sales as a function of advertising expenditures (Xi) and per capita income (Xa) in your sales orea The following mutple i Y = 10 + . 51x1 + 45x2 The coefficient of determination is 96 Determine which of the following conclusions is velid reg O More analysis is needed The coefficient of cetermination leaves much unexplained. O The regression line fts the dato used in the sample O The coefficient of determination is positive becouse the constant term is pos tive O The coefficient of determination should always be greater then one s with sales

Explanation / Answer

1. A strong coffecient of determination i.e. 0.96 indiactes that 96% of the variances are explained by the equation. Thus, The regression line fits the data used in the sample very wel and is a stronhg indicator of the relationship between the two variables.

Thus, correct option is the second one.

2. The $2 X indicates that apart from the fixed costs of $1000 , $2 per direct labour hour shall be charged to determine total factory overhead.

Thus, correct option is the second one.

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