If All the Points of a Scatter Diagram Lie on the Least

question 17

Multiple Choice

If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on these data is

• A)0
• B)1
• C)either 1 or -1, depending upon whether the relationship is positive or negative
• D)could be any value between -1 and 1

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Definitions:

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends, used for investment or paying off debt.

Straight-Line Depreciation

A depreciation technique that allocates an equal amount of depreciation each year over the asset's useful life.

Residual Value

The estimated amount that an asset is expected to sell for at the end of its useful life, subtracting any disposal costs.