In Linear Regression, an R² of

question 104

Multiple Choice

In linear regression, an r² of .984 implies what?

• A) 98.4% of the variability of the independent variable is explained by the dependent variable
• B) 98.4% of the variability of the dependent variable is explained by the independent variable
• C) 1.6% of the variability of the independent variable is explained by the dependent variable
• D) 1.6% of the variability of the dependent variable is explained by the independent variable
• E) 99.2% of the variability of the dependent variable is explained by the independent variable

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Definitions:

Net Present Value

The present value of cash flows minus the present value of cash outlays, used in capital budgeting to assess the profitability of an investment or project.

Discount Rate

Rate used to determine the value today of a dollar received in the future.

Capital Costs

The fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or services.

Automated Warehouse

A facility where the movement of goods and storage operations are carried out by robotic systems and automated machinery, reducing the need for manual labor.