Which of the Following Is True of the R-Squared R2)

question 8

Multiple Choice

Which of the following is true of the R-squared R2) value in Excel's Trendline function?

• A) A value of 1.0 for R2 indicates maximum deviation of the data from the line.
• B) If the value of R2 is above 1.0, the line will be at a perfect fit for the data.
• C) The value of R2 will always be between -1 and 1.
• D) As the value of R2 gets higher, the line will be a better fit for the data.

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Definitions:

Liability-revenue Relationship

A financial concept that examines the connection between a company's incurred liabilities and the revenue generated over a certain period.

Deferred Revenue

Revenue recorded by a corporation for products or services that have not yet been provided or executed, classified as an obligation.

Accrued Revenue

Income earned but not yet received or recorded at the end of the accounting period.

Shareholders' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership stake of the shareholders.