Asked by Lavkush Tamrakar on May 08, 2024
Verified
When using regression analysis to determine estimated costs, what criteria are necessary to evaluate a particular regression line?
A) Closeness to pre-analysis guess
B) Goodness of fit
C) Coefficient of determination
D) Goodness of fit AND coefficient of determination
Regression Analysis
A statistical method used to model and analyze the relationships between a dependent variable and one or more independent variables.
Coefficient of Determination
A statistical measure, indicated by R², that shows the proportion of variance in the dependent variable predictable from the independent variable(s).
Goodness of Fit
A statistical measure that indicates how well observed data correspond to the expected outcome under a specified model.
- Identify the assumptions and criteria necessary for regression analysis in cost estimation.
Verified Answer
Learning Objectives
- Identify the assumptions and criteria necessary for regression analysis in cost estimation.
Related questions
The High and Low Points Used in the High-Low Method ...
Which of the Following Is an Example of an Engineered ...
Which of the Following Are Important in Estimating the Cost ...
Your Boss Would Like You to Estimate the Fixed and ...
The Accounting Department of Archer Company, a Merchandising Company, Has ...