Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output:

Regression Statistics
Multiple R	0.9776
R Square	0.9538
Observations	30

	Coefficients	Standard Error	T Stat	P-Value
Intercept	174,427	61,027	2.86	0.021
Production (X)	11.84	0.9231	12.83	0.000

How much of the variation in cost is not explained by production?

Multiple Choice

• 7.69%

• 2.24%

• It is impossible to determine.

• 4.62%