The Multiple Correlation of Several Variables with a Dependent Variable

question 31

Multiple Choice

The multiple correlation of several variables with a dependent variable is

• A) less than the largest individual correlation.
• B) equal to the correlation of the dependent variable to the values predicted by the regression equation.
• C) noticeably less than the correlation of the dependent variable to the values predicted by the regression equation.
• D) It could take on any value.

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Definitions:

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.

Net Income

After-tax and expense deductions from total revenue, the remaining profits of a company.

Cash Dividends

Cash distributions given by a company to its stockholders out of its earnings.

Paid-in Capital

The amount of money that a company has received from shareholders in exchange for shares of stock.