What Does a Coefficient of Determination of 0

question 10

Multiple Choice

What does a coefficient of determination of 0.91 indicate?

• A)Ninety-one percent of the variables move together in the same direction and have a strong relationship.
• B)The parameter is 91 percent significant.
• C)The model is significant 91 percent of the time.
• D)The independent variable explains 91 percent of the cost.

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Definitions:

Incremental Cash Flows

The net additional cash flows generated by a company as a result of taking on a new project or investment.

Leasing vs. Buying

A comparative analysis between renting an asset for a certain period and purchasing the asset outright, each with its own financial implications.

Lessor's Tax Rate

The tax rate applicable to the income earned from leasing assets or property by the lessor.