In a Regression and Correlation Analysis, If R² = 1

question 8

Multiple Choice

In a regression and correlation analysis, if r² = 1, then

• A) SSE = SST.
• B) SSE = 1.
• C) SSR = SSE.
• D) SSR = SST.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.

Reverse Stock Split

A corporate action where a company decreases the number of its outstanding shares to increase the share price without altering the company's market capitalization.

Par Value

The nominal or face value of a bond, share, or other financial instruments, which does not necessarily reflect its market value.

Debt-Equity Ratio

The debt-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess financial leverage.