The Editors of a National Automotive Magazine Recently Studied 30

question 100

Multiple Choice

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon. A number of different independent variables were collected. The following regression output (with some values missing) was recently presented to the editors by the magazine's analysts: Based on this output and your understanding of multiple regression analysis, what is the adjusted R- square value for this model?

• A) About 0.82
• B) Approximately 0.90
• C) Just under 0.48
• D) None of the above

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It denotes the distribution of a portion of the company's earnings.

Home Mortgage Securitization

The process of bundling home loans into securities that are then sold to investors.

Mortgage Originators

Mortgage Originators are institutions or individuals that work with borrowers to complete a mortgage transaction, including the creation and processing of home loans.

Asset Liquidity

A measure of how easily an asset can be converted into cash without significantly affecting its market price.