The coefficient of determination for Armer s regression equation for the
The coefficient of determination for Armer’s regression equation for the maintenance activities is
a. 34.469/49.515
b. .99724
c. Square root of .99724
d. (.99724) 2
e. None of the above
(CMA Adapted)
Armer Company, which is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs.
Data regarding the maintenance hours and costs for the last year and the results of the regression analysisfollow:
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