In a Regression and Correlation Analysis, If R² = 1

question 36

Multiple Choice

In a regression and correlation analysis, if r² = 1, then

• A) SSE must also be equal to one.
• B) SSE must be equal to zero.
• C) SSE can be any positive value.
• D) SSE must be negative.

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Definitions:

Conversion Cost

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished products.

Average Cost Method

An inventory valuation method that assigns an average cost to each item in stock, used to determine the cost of goods sold.

Conversion Costs

The combined costs of direct labor and overhead expenses incurred to convert raw materials into finished goods.

Average Cost Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory, regardless of purchase date.