If a Coefficient of Determination for a Given Model Is

question 15

Multiple Choice

If a coefficient of determination for a given model is 0.85, then its variance inflation factor is ______.

• A)8.5
• B)7.7
• C)6.2
• D)4.9
• E)6.7

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Definitions:

Allowance for Doubtful Accounts

An estimation of the accounts receivable that may not be collected, serving as a contra account to accounts receivable.

Percentage of Receivables Basis

An accounting method to estimate the allowance for doubtful accounts based on the expected uncollectibility of accounts receivable.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported on the balance sheet to reflect the amount expected to be uncollectible.

Percentage of Sales Method

A method used for financial forecasting that predicts future occurrences, such as expenses or inventory needs, based on a fixed percentage of sales.