What Does R2,the Coefficient of Determination,measure

question 17

Multiple Choice

What does R2,the coefficient of determination,measure?

• A)the probability of the true value falling within the forecast interval
• B)the p-value on the coefficient we are using to test our hypothesis of interest
• C)the confidence interval of the error terms as determined by the coefficients
• D)the proportion of the variation in y explained by x within the regression model

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Definitions:

Static Budget Report

A financial report based on the assumption of a fixed level of activity and expenditure, without adjusting for variations in actual performance.

Master Budget Activity Level

The projected volume of activity, such as sales or production, that is anticipated and used as a basis for the master budget.

Performance Report

A document that compares actual results to planned or budgeted results, often used in business to assess performance.

Actual Production

The measure of the quantity of goods or services produced by a company during a specific period.