In a Simple Linear Regression Problem,if the Percentage of Variation $R ^ { 2 }$

question 68

True/False

In a simple linear regression problem,if the percentage of variation explained $R ^ { 2 }$
is 0.95,this means that 95% of the variation in the explanatory variable X can be explained by regression.

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Definitions:

Compounded Annually

This is an interest calculation method where interest is added to the principal once a year.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effects of compounding.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal sum twice a year, causing the interest to earn interest.

Strip Bond

A type of bond where the principal and regular coupon payments have been separated and are sold individually as zero-coupon bonds.