The Coefficient of Determination

question 19

Multiple Choice

The coefficient of determination:

• A) describes the variation in the dependent variable caused by the control variable.
• B) tells you the percentage of the total variation in the independent variable caused by the dependent variable.
• C) ranges from -1.0 to +1.0.
• D) ranges from .00 to 1.0.
• E) is a stronger measure than the Pearson correlation coefficient.

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Definitions:

Explicit Costs

Explicit costs refer to the direct, out-of-pocket payments made by businesses for the resources they use, such as wages, rent, and materials.

Uninsurable Risk

An eventuality for which the frequency or magnitude of potential losses is unpredictable or unknowable. Insurance companies are not willing to sell insurance against such risks.

Consumer Tastes

Preferences or likes and dislikes of consumers that influence their purchasing behavior and are affected by cultural, social, personal, and psychological factors.

Business Firm

An organization engaged in commercial, industrial, or professional activities, aiming to earn profits by providing goods or services.