In a Simple Linear Regression, If the Coefficient of Determination

question 4

Multiple Choice

In a simple linear regression, if the coefficient of determination is 0.94, then:

• A) 94% of the x-values are equal.
• B) 98% of the total variation in x can be explained by the regression line.
• C) 94% of the total variation in y can be explained by the regression line.
• D) 98% of the total variation in y can be explained by the regression line.

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Definitions:

Marginal Revenue

The additional income that is gained from selling one more unit of a product or service.

Monopoly's Product

A unique product or service without close substitutes, offered by a monopolist who faces no competition.

Profit-Maximizing

Refers to strategies or decisions taken by a company to maximize its profits by increasing revenue, reducing costs, or both.

Charge a Price

The act of assigning a monetary value to a product or service that customers must pay to obtain it.