In a Regression and Correlation Analysis, If R² = 1

question 36

Multiple Choice

In a regression and correlation analysis, if r² = 1, then

• A) SSE must also be equal to one.
• B) SSE must be equal to zero.
• C) SSE can be any positive value.
• D) SSE must be negative.

---

Definitions:

Deferred Tax

Deferred tax refers to taxes that are accrued but not yet paid due to timing differences between the recognition of income or expenses for financial reporting and tax purposes.

Financial Reporting

The process by which a company discloses its financial performance to stakeholders, including investors and regulators, typically through financial statements.

Interfirm Comparisons

The analysis and evaluation of a company's performance or financial health in relation to its competitors or industry standards.

Deferred Tax Asset

An item on a company’s balance sheet that represents the difference in timing between when a tax is accrued and when it is paid, potentially reducing future tax liability.