1. The R2 (.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). II. 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. Multiple Choice Only statement I is true. Neither statement is true. Both statements are true. Only statement II is true.