The Proportion of Variability of the Dependent Variable Accounted for or Explained

question 107

Multiple Choice

The proportion of variability of the dependent variable accounted for or explained by the independent variable is called the _______.

• A)sum of squares error
• B)coefficient of correlation
• C)coefficient of determination
• D)covariance
• E)regression sum of squares

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Definitions:

Working Capital

A measure of a company’s liquidity; computed as current assets minus current liabilities.

Note Payable

A written agreement in which one party agrees to pay another party a definite sum of money at a future date or on demand.

Current Assets

Assets likely to be converted into cash, sold, or consumed within a year or the normal operating cycle of the business.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a business.