Which of the Following Is True of the R-Squared Statistic

question 46

Multiple Choice

Which of the following is true of the R-squared statistic?

• A)It measures the slope of the regression equation.
• B)It measures the proportion of the variation of the dependent variable left unexplained by the multiple-regression equation.
• C)It measures the total variation in the dependent variable induced by changes in the explanatory variables.
• D)It is the standard error of the coefficient associated with an independent variable.
• E)It measures the proportion of the variation of the dependent variable that is explained by the multiple-regression equation.

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Definitions:

Total Profits

The sum of net income or net earnings of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Contribution Margin Ratio

A financial metric that calculates the proportion of revenue that exceeds total variable costs, thus indicating how much revenue contributes to fixed costs and profits.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Units Sold

The total quantity of products that have been sold during a particular period.