Multiple Choice
The Schmidt Company used regression analysis to predict the annual cost of indirect materials. The results were as follows: 
-The independent variable (activity) selected should have a high degree of correlation with the dependent variable (cost) as indicated by a coefficient of determination that is:
A) close to -1
B) close to +1
C) equal to 0
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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