If the Coefficient of Determination Is 0

question 65

Multiple Choice

If the coefficient of determination is 0.9, the percentage of variation in the dependent variable explained by the variation in the independent variable

• A)is 0.90%
• B)is 90%.
• C)is 81%
• D)0.81%

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Definitions:

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, not including autonomous consumption that doesn’t change with income.

Disposable Income

Financial capacity reserved for household spending and savings after navigating through income tax deductions.

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, representing the base level of spending that must occur even in the absence of income.

Public Savings

The portion of national savings held by the government, typically reflected in budget surpluses.