The Annual Returns (In Percent) for a Sample of Stocks

question 34

Multiple Choice

The annual returns (in percent) for a sample of stocks in the technology industry over the past year are as follows: (See the Excel Data File.) The median return is the closest to ________.

• A) -6.6
• B) -5
• C) 0
• D) 2.8

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Definitions:

SSR

Sum of Squares due to Regression, a measure used in statistical analysis to determine the variation explained by the independent variable(s) in a regression model.

SSE

Sum of Squared Errors; a measure of the discrepancy between the data and an estimation model, representing the total deviation of the response values from the fit values.

Null Hypothesis

A hypothesis in statistical inference and testing that suggests no significant difference or effect, intending for it to be challenged by the alternative hypothesis.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and two or more independent variables.