Answer (A) is correct . The coefficient of determination (r 2 ) measures the percentage of the total variance in cost that can be explained by the regression equation. If the coefficient of determination is .99724, 99.724% of the variance is explained by the regression equation. Thus, the values in the regression equation explain virtually the entire amount of total cost.
Answer (B) is incorrect because The percentage of the total variance explained by the regression equation is 99.724%, which corresponds to the coefficient of determination (r 2), or .99724.
Answer (C) is incorrect because The percentage of the total variance explained by the regression equation is 99.724%, which corresponds to the coefficient of determination (r 2), or .99724.
Answer (D) is incorrect because The percentage of the total variance explained by the regression equation is 99.724%, which corresponds to the coefficient of determination (r 2), or .99724.
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The percentage of Wilkens Co.’s total variance that can be explained by the regression equation is
