I the Multiple Coefficient of Determination, R2, Reports the Proportion

question 110

Multiple Choice

i. The multiple coefficient of determination, R2, reports the proportion of the variation in Y that is
Explained by the variation in the set of independent variables.
ii. The coefficient of multiple determination reports the strength of the association between the
Dependent variable and the set of independent variables.
iii. A coefficient of multiple determination equalling -0.76 is definitely possible.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Domestic Opportunity Costs

The cost of forgoing the next best alternative use of a country's domestic resources.

Capital-Intensive

A type of industry or business that requires large amounts of capital investment in comparison to labor to produce goods or services.

Labor-Intensive

A term describing industries or businesses that require a large amount of human labor relative to capital equipment to produce goods or services.

Comparative Advantage

The ability of a country, firm, or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade outcomes.