If the Coefficient of Determination Is 1

question 184

True/False

If the coefficient of determination is 1.0,then the coefficient of correlation must be 1.0.

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and the present value of cash outflows over time.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Internal Rate

Likely referring to the Internal Rate of Return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Net Present Value

A financial measurement that calculates the value of a project or investment by discounting future cash flows to the present.