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When Evaluating a Cost Function Estimated by Least Squares Regression,it

Question 72

Multiple Choice

When evaluating a cost function estimated by least squares regression,it is important to see if the estimated cost function makes economic sense.This is assessed by ________.


A) examining the sign of the coefficient of determination
B) examining the sign of the fixed cost estimate
C) examining the sign of the variable cost estimate
D) examining the standard deviation of the cost driver

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