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Question

All of the following statements are false except: All of the given statements are false: The R2 (i.e., R-squared) varies from 0% to 100%, and the lower the percentage, the better the fit of the data to a straight line. The R2 (i.e., R-squared) tells us the percentage of the variation in the dependent variable (cost) that is explained by variation in the independent variable (activity). Least-squares regression selects the values for the intercept and slope of a straight line that minimize the sum of the errors. A quick look at a scattergraph of cost versus activity can reveal whether there is little or complex relation between the cost and the activity. In such cases, least square regression is highly recommended for estimating fixed and variable costs.

          All of the following statements are false except:
All of the given statements are false: The R2 (i.e., R-squared) varies from 0% to 100%, and the lower the percentage, the better the fit of the data to a straight line. The R2 (i.e., R-squared) tells us the percentage of the variation in the dependent variable (cost) that is explained by variation in the independent variable (activity). Least-squares regression selects the values for the intercept and slope of a straight line that minimize the sum of the errors. A quick look at a scattergraph of cost versus activity can reveal whether there is little or complex relation between the cost and the activity. In such cases, least square regression is highly recommended for estimating fixed and variable costs.

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