If an Estimated Regression Explains None of the Variation, R²

question 58

Multiple Choice

If an estimated regression explains none of the variation, R² will be

• A)0.
• B)between 0 and 1.
• C)1.
• D)unable to determine with the information given.

---

Definitions:

Fair Value

The financial gain from selling an asset or the financial outlay for relocating a liability in an orderly market activity on the designated measurement day.

Consolidated Revenues

Total revenues generated by a parent company and its subsidiaries, presented in a combined form on the financial statements.

Contingency Payment

A payment that is made only if specific conditions are met, often used in acquisitions or contractual agreements.

Discount Rate

The interest rate used to discount future cash flows to their present value, often important in determining the value of investments or projects.