The R² Value

question 19

Multiple Choice

The R² value:

• A) is the variability of the observed Y-values from the predicted values.
• B) indicates that as the independent variable increases, the intercept term does too.
• C) gives the proportion of variation in the dependent variable that is explained by the independent variable.
• D) transforms the cumulative probability scale (vertical axis) so that the graph of the cumulative normal distribution is a straight line.

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Definitions:

Precious Metals

Metals of high economic value, often used as an investment or industrial commodity, including gold, silver, platinum, and palladium.

Deficit Financing

The practice of funding government spending by borrowing rather than from taxation or savings, often leading to a budget deficit.

Recession

An interval where the economy experiences a downturn, with a noticeable decrease in trade and manufacturing activities, usually identified by GDP decreasing for two straight quarters.

Inflation

An increase in the economy’s average price level.