Hill Top Products Has Run a Regression Analysis Comparing Total

Multiple Choice

Hill Top Products has run a regression analysis comparing total production and utilities' costs for the past six months.The regression analysis shows an R square (R²) of .86.Which of the following statements best describes the meaning of R²?

A) 86 per cent of the company's total costs are utilities costs.
B) 86 per cent of the variation in utilities costs is not explained by the increase or decrease in production.
C) 86 per cent of the variation in utilities costs is explained by the increase or decrease in production.
D) 86 per cent of the company's total costs are fixed costs and the remaining 14 per cent are variable costs.