R² measures

question 52

Multiple Choice

R² measures

• A)the percentage of variability in the dependent variable,Y,explained by the model
• B)the unexplained variability
• C)the ratio of RSS/ESS
• D)the model sophistication

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Definitions:

Trade Restrictions

Measures imposed by governments to regulate international trade, including tariffs, quotas, and embargoes, to protect domestic industries or to affect political change.

Economic Inefficiency

A situation where resources are not utilized in the best possible way, leading to wastage and loss of potential output.

Saving Rate

The portion of income not spent on current expenditures or taxes and is typically expressed as a percentage of total personal disposable income.

Cost Of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds, encompassing the cost of debt and equity.