The Total Sum of Squares (TSS) Is Best Defined as

question 55

Multiple Choice

The total sum of squares (TSS) is best defined as

• A) the sums of squares of the dependent variables.
• B) the total variation of Y around its mean.
• C) the sums of squares of the predicted values.
• D) the variation of Y around its mean plus the variation of Y around the predicted values.

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Definitions:

Net Present Value

An approach to determining the value of an investment by discounting future cash flows to their present value.

Cash Flows

The total amount of money being transferred into and out of a business, particularly regarding calculating its operating, investing, and financing activities.

Discount Rate

Utilized in discounted cash flow analysis, this rate assists in calculating the present worth of forthcoming cash flows.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate to present day.