TABLE 13-8 It Is Believed That GPA (Grade Point Average, Based on Based

question 6

Multiple Choice

TABLE 13-8
It is believed that GPA (grade point average, based on a four point scale) should have a positive linear relationship with ACT scores. Given below is the Excel output for predicting GPA using ACT scores based a data set of 8 randomly chosen students from a Big-Ten university.

-Referring to Table 13-8, the interpretation of the coefficient of determination in this regression is

• A) 57.74% of the total variation of ACT scores can be explained by GPA.
• B) ACT scores account for 57.74% of the total fluctuation in GPA.
• C) GPA accounts for 57.74% of the variability of ACT scores.
• D) None of the above.

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Outstanding Voting Common Stock

The shares of a company held by shareholders that are entitled to vote and are not held by the company itself.

Amortization

The process of gradually writing off the initial cost of an asset over a period, typically for intangible assets.

Inventory Costing

An accounting method used to value inventory, commonly involving First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or weighted average cost methods.