If the Coefficient of Determination Is 0

question 32

Multiple Choice

If the coefficient of determination is 0.975,then which of the following is true regarding the slope of the regression line?

• A)All we can tell is that it must be positive.
• B)It must be 0.975.
• C)It must be 0.987.
• D)Cannot tell the sign or the value.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a set of accounting standards and practices used to prepare financial statements.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.

Discounted Note

A promissory note that is sold or issued for less than its face value and upon maturity pays out its full face value, effectively generating interest for the holder.