A Cost Function with One Independent Variable Is Estimated with Least

Multiple Choice

A cost function with one independent variable is estimated with least squares regression.The coefficient of determination for the equation is 0.50.This statistic indicates that ________.

A) the independent variable does not explain changes in the dependent variable very well
B) the dependent variable does not explain changes in the independent variable very well
C) the cost estimates are correct 50 percent of the time
D) the cost estimates are not correct 50 percent of the time