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If the Independent Variable Is Production Volume and the Dependent

Question 27

Multiple Choice

If the independent variable is production volume and the dependent variable is total manufacturing cost, a coefficient of determination of .90 indicates


A) 90 percent of the change in manufacturing cost can be explained by the change in the production volume.
B) 90 percent of the change in volume is caused by changes in manufacturing cost.
C) 10 percent of the change in volume is caused by changes in manufacturing cost.
D) costs will change by 90 percent of the change in volume.

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