A Very Insignificant Independent Variable (An Independent Variable That Has

question 64

Multiple Choice

A very insignificant independent variable (an independent variable that has a very weak relationship with the dependent variable) is added to a multiple regression equation.As a result of this change,the value of the explained variation (SSR) will _________,the value of the multiple coefficient of determination (R²) will _________,and the calculated value of the F statistic will most likely _________.

• A)Decrease,increase,decrease
• B)Increase,decrease,decrease
• C)Increase,increase,increase
• D)Increase,increase,decrease
• E)Decrease,decrease,decrease

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Definitions:

Net Operating Loss Carryforward

A tax provision that allows a company to apply a fiscal year's net operating losses to future years' profits in order to reduce taxable income.

Consolidated Tax Returns

A single tax return filed by a parent company and its subsidiaries, treating them as one taxpayer.

U.S. Tax Law

The body of laws and regulations governing the collection and administration of taxes in the United States.

Undistributed Earnings

Refers to the portion of a company's net profits that has not been paid out to shareholders as dividends but is retained for reinvestment in the business or to pay off debt.