Which of the Following Statements Is True About R²

question 88

Multiple Choice

Which of the following statements is true about r²?

• A)It is also called the coefficient of correlation.
• B)It is also called the coefficient of determination.
• C)It represents the percent of variation in X that is explained by Y.
• D)It represents the percent of variation in the error that is explained by Y.

---

Definitions:

Short Run

A time period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Competitive Firm

A company that operates in a market with many sellers, where it has little to no control over the price of its product.

Perfectly Elastic

Perfectly Elastic describes a situation in which the quantity demanded or supplied responds infinitely or extremely sensitively to a change in price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at each price level.