Given the Least Squares Regression Line , and a Coefficient

question 54

Multiple Choice

Given the least squares regression line , 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:

Return-On-Sales Ratio

A measure of a company's operational efficiency, calculated as operating income divided by net sales.

Leverage Ratio

A financial ratio indicating the level of debt incurred by a business entity against its assets or equity, showing the degree of leverage.

Market-To-Book Value

A ratio comparing a company's current market price to its book value, thereby indicating how much investors are willing to pay above or below the net asset value.

ROA

Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets.