If the Coefficient of Determination Is 0

question 32

Multiple Choice

If the coefficient of determination is 0.975,then which of the following is true regarding the slope of the regression line?

• A)All we can tell is that it must be positive.
• B)It must be 0.975.
• C)It must be 0.987.
• D)Cannot tell the sign or the value.

---

Definitions:

Dividend Payments

Cash or stock distributed by a company to its shareholders out of its profits or reserves.

Signaling

The act of using information to convey a message about the quality or desirability of a product, service, or investment, often in situations where there is asymmetric information.

Dividend Policy

A company's approach to distributing profits to its shareholders, determining the size and timing of dividend payments.

Common Stock

A type of equity investment representing ownership in a corporation, with holders entitled to vote on corporate issues and receive dividends.