Question
Randle Company ran a regression analysis comparing total units of production and maintenance costs for the past four months. The regression analysis shows an R-squared
Randle Company ran a regression analysis comparing total units of production and maintenance costs for the past four months. The regression analysis shows an R-squared of 0.76. Which of the following statements best describes this measure?
76 percent of the total maintenance costs are fixed and 24 percent are variable. | ||
76 percent of the variation in maintenance costs is not explained by the increase or decrease in production. | ||
76 percent of the variation in maintenance costs is explained by the increase or decrease in production. | ||
76 percent of the company's total costs are maintenance costs. | ||
None of the answer choices is correct. |
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