The Coefficient of Determination Is Important in Explaining Variances in Estimating

question 105

Multiple Choice

The coefficient of determination is important in explaining variances in estimating equations. For a certain estimating equation, the unexplained variation was given as 22,000. The total variation was given as 55,000. What is the coefficient of determination for the equation?

• A) 2.50
• B) 0.40
• C) 0.60
• D) 1.40

---

Definitions:

Income

The monetary payment received by an individual or household for their labor, investments, or from transfer payments, used to fund consumption and savings.

Interest Rate

The cost of borrowing money or the return on investment, typically expressed as an annual percentage of the principal.

Consumption

Families engaging in the use of products and services.

Income

Sums of money attained, usually on a fixed schedule, from work or investment undertakings.