Suppose a Regression with 51 Observations Returns a Regression Sum

question 1

Multiple Choice

Suppose a regression with 51 observations returns a regression sum of squares of 56,000 and a total sum of squares of 250,000.The corresponding R² is:

• A) 0.776.
• B) 0.224.
• C) 0.345.
• D) 0.671.

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Definitions:

Variable Costs

Charges that fluctuate according to the degree of business operations.

Cost-volume-profit Graph

A graphical representation that shows the relationship between a company's costs, its sales volume, and its profits, used for planning and decision-making.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, illustrating the relationship between costs (both variable and fixed), volume of production, and the resulting profit or loss.

Management

The process of dealing with or controlling things or people within an organization.