A Regression Model Involving 3 Independent Variables for a Sample

question 79

Essay

A regression model involving 3 independent variables for a sample of 20 periods resulted in the following sum of squares.
Sum of Squares
Regression 90
Residual Error) 100
a. Compute the coefficient of determination and fully explain its meaning.
b. At α = 0.05 level of significance, test to determine whether or not there is a significant relationship between the independent variables and the dependent variable.

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Definitions:

Financial Period

A specified duration of time used for financial reporting and accounting purposes, typically one year or one quarter.

Revaluation Surplus

Revaluation surplus is an accounting term that refers to the increase in value of an asset, recognized after its revaluation exceeds its previously recorded value.

Retained Earnings

The accumulation of a company's net profits less any dividends paid to shareholders over its lifetime, reflecting the company's reinvestment back into operations.

Plant Derecognition

Occurs when a fixed asset is removed from the financial statements because it has been disposed of, sold, or is no longer in use and does not provide future economic benefits.