Entrepreneurs Mostly Focus on a Single Number: Profits

question 179

Multiple Choice

Entrepreneurs mostly focus on a single number: profits. As a result, which of the following statements tends to be true about their firms?

• A) The firms tend to do well in some aspects of their operations, but other aspects are neglected.
• B) The firms cannot achieve a very high overall efficiency.
• C) The firms pay close attention to every aspect of their operations.
• D) The firms' suppliers and customers are often left behind.

---

Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., in linear regression).

Multiple Determination

A statistical measure represented as R^2, indicating the proportion of variance in the dependent variable that can be predicted from the independent variables.

Regression Hyperplane

In multivariate statistics, it's a flat subspace that best fits the data points in a regression analysis.

Total Variation

The overall measure of variability or spread in a dataset.