Given the Least Squares Regression Line $\hat { y } = - 2.48 + 1.63 x$

question 7

Multiple Choice

Given the least squares regression line $\hat { y } = - 2.48 + 1.63 x$ ,and a coefficient of determination of 0.81,the coefficient of correlation is:

• A) -0.66
• B) 0.81
• C) -0.90
• D) 0.90

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Definitions:

Common Stock

Equity ownership in a corporation, where holders often have voting rights but are last in line in claims to assets and income.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Paid-In Capital

The sum of money contributed by investors through the issuance of common or preferred stocks, encompassing both the nominal value of these shares and any premium above this value.