If the Correlation Coefficient (R) = 1.00, Then

question 73

Multiple Choice

If the correlation coefficient (r) = 1.00, then

• A) the Y-intercept (b₀) must equal 0.
• B) the explained variation equals the unexplained variation.
• C) there is no unexplained variation.
• D) there is no explained variation.

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Definitions:

IFRS 8

An International Financial Reporting Standard that requires companies to report financial information by business segment to provide a clearer understanding of a company’s performance.

Operating Segment

A component of an enterprise that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the enterprise's chief operating decision maker.

Quantitative Threshold

A specified numerical limit or benchmark that must be met or exceeded, often used in contexts like financial regulation or performance measurement.

Reportable

Refers to information or actions that must be disclosed to regulatory authorities or in financial statements according to legal or regulatory requirements.