The Regression Printout Below Shows the Results of a Regression

question 94

Multiple Choice

The regression printout below shows the results of a regression analysis intended to link company profits (x) to CEO salary (y) .A sample of 18 CEOs was used.Based on the printout provided, what proportion of the variation in income CANNOT be explained by the profit-to-salary relationship represented by the estimated regression line?

• A).082
• B).106
• C).391
• D).048
• E).024

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets or services.

Stockholders' Equity

The ownership stake of shareholders in a corporation, which is the value left over from the assets after liabilities have been taken out.

Treasury Stock

Shares that were issued and later reacquired by the company, reducing the amount of outstanding stock.

Par Common Stock

The nominal value assigned to share of common stock, as specified in the corporate charter, which represents the minimum price shares can be issued.