What Is the Relationship Between the Coefficient of Determination and the Correlation

question 72

Multiple Choice

What is the relationship between the coefficient of determination and the correlation coefficient?

• A) The larger the correlation coefficient, the larger the coefficient of determination.
• B) The larger the correlation coefficient, the smaller the coefficient of determination.
• C) The relationship between them would have a correlation coefficient of zero exactly.
• D) The larger the correlation coefficient, the more variance can be attributed to error or chance.

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Definitions:

Withdraws

The action of taking money out of an account, or removing capital from a business by its owners.

Personal Use

Personal use refers to the utilization of property, assets, or services for individual rather than business or commercial purposes.

Journal Entry

A record of financial transactions in the accounting books of a business, showing the accounts affected and the amounts of debits and credits.

Purchase on Account

A transaction in which a buyer acquires goods or services with an agreement to pay the supplier at a later date, typically billed through an invoice.