Question

Randle Company ran a regression analysis comparing total units of production and maintenance costs for the past four months. The regression analysis shows an R-squared of 0.76. Which of the following statements best describes this measure? 76 percent of the total maintenance costs are fixed and 24 percent are variable. 76 percent of the variation in maintenance costs is not explained by the increase or decrease in production. 76 percent of the variation in maintenance costs is explained by the increase or decrease in production. 76 percent of the company's total costs are maintenance costs. None of the answer choices is correct. Question 22 2 pts Some companies choose to use the scattergraph method to estimate costs because this method considers: only the average levels of activity only the highest levels of activity only the lowest levels of activity all data points. None of the answer choices is correct.

Answer 1

Answer 21 : 76 percent of the variation in maintenance costs is explained by the increase or decrease in production.

as

R squared is the estimation that how dependent variable changes due to changed in independent variable

Answer 22  all data points

as

Scattergraph consider all data points so it is the choice of many companies for analysis of data

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