If the Sum of Squares Due to Regression (SSR)is 60,which

question 73

Multiple Choice

If the sum of squares due to regression (SSR) is 60,which of the following must be true?

• A) The coefficient of correlation is 0.9.
• B) The total sum of squares (SST)is at least 60.
• C) The y-intercept is positive.
• D) The slope,b,is positive.
• E) The coefficient of determination is 0.81.

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Definitions:

Selling at Par

Selling at par refers to the condition where a security is sold at its face value, not at a discount or premium.

Call Provision

A clause in a bond's contract that allows the issuer to repurchase and retire the debt before its maturity date, usually at a premium price.

Bond Issuer

An entity, often a corporation or government, that issues debt securities to raise funds.

Fisher Effect

A theory proposing that the real interest rate is equal to the nominal interest rate minus the expected inflation rate, emphasizing the relationship between inflation and real and nominal interest rates.