Hill Top Products has run a regression analysis for utilities costs and the total production for the past six months. The regression analysis shows an R square (R2 ) of .86. Which of the following statements best describes the meaning of R2?
A) 86 percent of the company's total costs are utilities costs.
B) 14 percent of the variation in utilities costs is explained by the increase or decrease in production.
C) 86 percent of the variation in utilities costs is explained by the increase or decrease in production.
D) 86 percent of the company's total costs are fixed costs and the remaining 14 percent are variable costs.
C
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If Ashley Company accounts for the investment as a minority, passive investment and classifies it as a available-for-sale security the investment will appear in the December 31, 2010 balance sheet at what amount?
a. $60,000 b. $65,000 c. $64,000 d. $75,000
A pay plan that gives an employee cash or stock equal to the difference between some specified stock price and the quoted market price at some future time period is
a. stock appreciation rights. b. an ESOP. c. profit sharing. d. merit pay.
Refer to Table 1-1. At a market price of $1,800, there will be
A) neither a surplus nor a shortage of computers as the market is in equilibrium at this price. B) a surplus or a shortage of 2,000 computers. C) a shortage of 2,000 computers. D) a surplus of 2,000 computers.
In a fixed price contract with escalation, all price changes should be keyed to a third-party price index, preferably to a well-established, widely published index
a. True b. False Indicate whether the statement is true or false