If a Regression Analysis Shows an R Squared of

question 355

Multiple Choice

If a regression analysis shows an R squared of .85 exists, it is safe to assume

• A) a strong positive relationship between cost and volume.
• B) a strong negative relationship between cost and volume.
• C) no relationship between cost and volume.
• D) a perfect positive relationship between cost and volume.

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Definitions:

Price-Inelastic

A characteristic of a product or service whose demand does not significantly change with a change in its price.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Luxury

Goods or services that are considered non-essential but desirable and associated with high-quality and high price.

Defensive Medicine

The practice by healthcare providers of ordering tests, treatments, or procedures to protect themselves from potential malpractice lawsuits, rather than to benefit the patient.