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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
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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?

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