Given the Least Squares Regression Line Y-Hat = 3

question 46

Multiple Choice

Given the least squares regression line y-hat = 3.52 - 1.27x, and a coefficient of determination of 0.81, the coefficient of correlation is:

• A) -0.85.
• B) 0.85.
• C) -0.90.
• D) 0.90.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the current market price or the price for similar assets.

Exchange Transactions

Transactions in which each party to the deal exchanges goods or services of comparable value; this can include trade of goods, services, or financial assets.

Tangible Assets

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Cost Method

An accounting method used to value investments, where the investment is recorded on the balance sheet at its purchase cost.