Use the Table Below to Answer the Following Question(s) -Which of the Following Is True of the R-Squared (R²)value

question 23

Multiple Choice

Use the table below to answer the following question(s) .
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000.She expects a salary increase of 5 percent every year.Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent.She expects an annual return of 7 percent on her retirement portfolio.Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change.
$$\begin{array}{l}\text { Retirement Plan Model for Sheila }\\\begin{array} { | l | l | } \hline \text { Data } & \\\hline \text { Retirement Contribution ( percent of salary) } & \\\hline \text { Employer Match } & 9 \text { percent } \\\hline \text { Annual Salary Increase } & 32 \text { percent } \\\hline \text { Annual Return on Investment } & 5 \text { percent } \\\hline & 7 \text { percent } \\\hline\end{array}\end{array}$$
-Which of the following is true of the R-squared (R²) value in Excel's Trendline function?

• A)A value of 1.0 for R² indicates maximum deviation of the data from the line.
• B)If the value of R² is above 1.0, the line will be at a perfect fit for the data.
• C)The value of R² will always be between -1 and 1.
• D)As the value of R² gets higher, the line will be a better fit for the data.

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Definitions:

Original Investments

The initial amount of money invested in a project or business by its owners or investors.

Net Income

Net income refers to the total earnings of a company once all costs, expenses, and taxes are deducted from its total revenue.

Salary Allowances

Specific amounts designated for employees that are over and above their standard salary, often for specific purposes like housing, transportation, or special duties.

Full Time

Employment status characterized by working a minimum number of hours defined by the employer, typically 35-40 hours per week.