Question

If a regression analysis shows an R factor of 0.15, it is safe to assume a perfect positive relationship between cost and volume. a strong negative relationship between cost and volume. a strong positive relationship between cost and volume. a very weak relationship between cost and volume.

Answer 1

a very weak relationship between cost and volume

Explanation:

The R factor is used to access the strength of the relationship between a dependent and independent variable. The R factor ranges between - 1 and 1. With negative values depicting a negative linear relationship and positive values meaning a positive relationship. The closer the R factor is to - 1 or + 1, the greater the strength, a value of 0 means, no correlation exists.

Hence, a R factor of 0.15 depicts a positive but very weak relationship between cost and volume as the R value is close to 0.