A decision maker is considering constructing a multiple regression model with two independent variables. The correlation between x1 and y is 0.70, and the correlation between variable x2 and y is 0.50
Based on this, the regression model containing both independent variables will explain 74 percent of the variation in the dependent variable. Indicate whether the statement is true or false
FALSE
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If a company uses a two-variance analysis for overhead variances and uses a predetermined rate for absorbing manufacturing overhead, the production-volume variance is the:
a. Underapplied or overapplied variable cost element of overhead. b. Underapplied or overapplied fixed cost element of overhead. c. Difference in budgeted costs and actual costs of fixed overhead items. d. Difference in budgeted costs and actual costs of variable overhead items.