A Regression Analysis of Company Profits and the Amount of Money

question 83

Multiple Choice

A regression analysis of company profits and the amount of money the company spent on advertising produced a R2 = 0.72. Which of these is true?
I. This model can correctly predict the profit for 72% of companies.
II. 72% of the variance in company profit can be accounted for by the model.
III. On average, companies spend about 72% of their profits on advertising.

• A) None
• B) I only
• C) II only
• D) III only
• E) I and III

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Definitions:

Contrast Media

Substances used in medical imaging to improve the visibility of internal bodily structures in radiographic procedures.

Iodine

A chemical element essential for thyroid gland function, contributing to the production of thyroid hormones.

Contain

To contain means to hold or enclose something within a defined space or area, preventing it from spreading.

Magnetic Resonance Imaging

A diagnostic technique that uses magnetic fields and radio waves to produce detailed images of the body's internal structures.