R² measures ________

question 58

Multiple Choice

r² measures ________.

• A)the proportion of variation in one variable that is explained by the other
• B)the proportion of error variation
• C)the proportion of variation in Y related to the variation of the categories of X
• D)the proportion of variation in Y due to the variation within each of the categories of X

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Definitions:

Undistributed Profits

Profits earned by a company that are not paid out as dividends to shareholders but are retained within the company for reinvestment.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or market.

Inverted-U Theory

A hypothesis suggesting that a variable can produce effects that increase to a point after which further increases in the variable lead to a decline in the effect.

Industry Concentration Ratios

Statistical measures that express the extent to which a small number of firms dominate the total output, sales, or capacity in an industry.