Determine R^2 and Adjusted R^2
-Twelve Nursing Students Are Set $\mathrm { R } ^ { 2 }$

question 41

Multiple Choice

Determine R^2 and Adjusted R^2
-Twelve nursing students are set to graduate and the registration clerk at the nursing school wonders whether a student's age and GPA would be good predictors of their state board score. She obtains the following data.
Determine $\mathrm { R } ^ { 2 }$ for the multiple regression model $\hat { y } = b _ { 0 } + b _ { 1 } x _ { 1 } + b _ { 2 } x _ { 2 }$ where $x _ { 1 }$ is Age, $x _ { 2 }$ is $G P A _ { \text {, and } }$ is the response variable "state board score".

• A) \(78.1 \%\)
• B) \(73.3 \%\)
• C) \(88.4 \%\)
• D) \(87.9 \%\)

---

Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Independent Directors

Board members who do not have a material or pecuniary relationship with the company or its related parties, except for board compensation, ensuring unbiased and objective decisions.

Audit Committees

A subgroup of a company's board of directors responsible for overseeing financial reporting and disclosure.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.