is trying to understand the relationship between sales and advertising expenditure. The management accountant has carried out some analysis and has found that the coefficient of determination is 0.49. Which of the following is correct? *

For every $0.49 spent n advertising, $1.00 of sales will be

49% of the variation in advertising n b explained by the

For every $1.00 spent n advertising, $0.49 of sales will be

49% of the variation in sales n b explained b the corresponding variation in advertising.