A Regression Had the Following Results: SST = 102

question 248

True/False

A regression had the following results: SST = 102.55,SSE = 82.04.It can be said that 20.0% of the variation in the dependent variable is explained by the independent variables in the regression.

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Definitions:

Operating ROA

A profitability ratio that measures how efficiently a company utilizes its assets to generate operating income.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses investments to generate profit.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profitability that includes all expenses except for interest and income tax expenses.