If the Coefficient of Determination Is Equal to 1, Then

question 41

Multiple Choice

If the coefficient of determination is equal to 1, then the coefficient of correlation _____.

• A) must also be equal to 1
• B) can be either -1 or 1
• C) can be any value between -1 and 1
• D) must be -1

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Definitions:

Business Risk

The exposure a company or investor has due to uncertainties in the operating environment, including market demand, supply costs, and competition.

Financial Risk

The probability of loss inherent in financial operations, such as changes in market prices, interest rates, or credit quality.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain from business activities.

Authors' Royalties

Authors' royalties are payments made to authors from publishers or producers, based on a percentage of sales of their work.