Homework Help is Here – Start Your Trial Now!
Business
Accounting
The following is the simple regression results based on the data from Madrigal Corporation: Dependent variable – Machine maintenance costs Independent variable – Machine hours Computed values Intercept                                                                                                                   P  3,500 Coefficient on independent variable                                                                        P     3.50 Coefficient of correlation                                                                                               0.856 R2                                                                                                                                  0.733 What percentage of the variation in maintenance costs is explained by the independent variable?

The following is the simple regression results based on the data from Madrigal Corporation: Dependent variable – Machine maintenance costs Independent variable – Machine hours Computed values Intercept                                                                                                                   P  3,500 Coefficient on independent variable                                                                        P     3.50 Coefficient of correlation                                                                                               0.856 R2                                                                                                                                  0.733 What percentage of the variation in maintenance costs is explained by the independent variable?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

16.

The following is the simple regression results based on the data from Madrigal Corporation:

Dependent variable – Machine maintenance costs
Independent variable – Machine hours
Computed values
Intercept                                                                                                                   P  3,500
Coefficient on independent variable                                                                        P     3.50
Coefficient of correlation                                                                                               0.856
R2                                                                                                                                  0.733

What percentage of the variation in maintenance costs is explained by the independent variable?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS