If All the Points for a Multiple Regression Model with Two

question 62

Multiple Choice

If all the points for a multiple regression model with two independent variables were right on the regression plane,then the coefficient of determination would equal:

• A)0.
• B)1.
• C)2,since there are two independent variables.
• D)None of these choices.

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Definitions:

Discount Bonds

Bonds sold for less than their face value, offering investors the difference as profit upon maturity.

BBB Credit Rating

This is a credit score indicating that the borrower has a good credit standing, typically associated with medium-grade investment securities with a moderate risk of default.

B Credit Rating

A rating denoting a relatively high risk level for investors or lenders, indicating that the entity has significant credit risk but is not in default.

Treasury Yield Curve

A graphical representation showing the yields on U.S. Treasury securities at fixed maturities, indicating the relationship between interest rates and the length of time to maturity.