In Simple Linear Regression, Which of the Following Statements Indicates

question 103

Short Answer

In simple linear regression, which of the following statements indicates no linear relationship between the variables x and y? $\begin{array}{|l|l|}\hline\text { A. } & \text { The coefficient of determination is 1.0 .}\\\hline \text { B. } & \text { The coefficient of correlation is 0.0 .} \\\hline \text { C. } &\text { The sum of squares for error is 0.0 .}\\\hline \text { D. } &\text {The sum of squares for regression is relatively large. }\\\hline\end{array}$

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Definitions:

National Saving

The total amount of savings in a country, which is comprised of both private savings by households and the savings of the government, representing the difference between a nation’s income and consumption.

Open Economy

An economy that allows for trading and financial transactions with other countries.

Investment

Refers to the purchase of goods that are not consumed today but are used in the future to create wealth, such as purchasing machinery for a factory.

Net Capital Outflow

The difference between domestic residents’ investments abroad and foreigners’ investments in the domestic economy.