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Develop the best linear cost estimation regression using OLS given the cost and technical data provided.

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B. False

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Final answer:

To develop the best linear cost estimation regression using OLS, follow these steps: draw a scatter plot, assess the relationship, calculate the least-squares line, and find the correlation coefficient.

Step-by-step explanation:

To develop the best linear cost estimation regression using OLS (Ordinary Least Squares), we need to follow these steps:

  1. Draw a scatter plot of the data with size as the independent variable and cost as the dependent variable.
  2. Assess whether there appears to be a relationship between the variables based on the scatter plot.
  3. Calculate the least-squares line by finding the equation in the form ŷ = a + bx.
  4. Find the correlation coefficient to determine if it is significant.

The slope of the least-squares line represents the rate of change in cost per unit change in size. Interpretation of the slope depends on the specific context of the data being analyzed.

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