If All the Points of a Scatter Diagram Lie on the Least

question 17

Multiple Choice

If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on these data is

• A)0
• B)1
• C)either 1 or -1, depending upon whether the relationship is positive or negative
• D)could be any value between -1 and 1

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Definitions:

Investments Section

A portion of a financial statement or report that enumerates an entity's investments in other companies, bonds, stocks, or other financial assets.

Currently Collectible

Amounts due that can be expected to be received or realized in cash within the current accounting period.

Direct Write-off

A method of accounting where uncollectible receivables are written off to expense only when they are deemed non-collectible.

Allowance Account

A contra account related to accounts receivable that estimates the amount of receivables which may not be collected.