A Psychologist Does an Experiment to Determine Whether an Outgoing $\mathrm { R } ^ { 2 }$

question 13

Multiple Choice

A psychologist does an experiment to determine whether an outgoing person can be identified by his or her handwriting.She claims that the $\mathrm { R } ^ { 2 }$ of 89% shows that this linear model is appropriate.

• A) \(\mathrm { R } ^ { 2 }\) does not tell whether the model is appropriate,but measures the strength of the linear relationship.High \(\mathrm { R } ^ { 2 }\) could also be due to an outlier.
• B)This \(\mathrm { R } ^ { 2 }\) means that 89% of the dependent values will fall within one standard deviation of the mean and tells nothing about the appropriateness of the model.
• C)An \(\mathrm { R } ^ { 2 }\) this high means there is a very weak linear association and the model is probably inappropriate.
• D) \(\mathrm { R } ^ { 2 }\) does not tell whether the model is appropriate,but gives the percentage of data points that are close to the model.You can sometimes have a high \(\mathrm { R } ^ { 2 }\) with a nonlinear relationship.
• E)There is nothing wrong with the interpretation.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how effectively a company manages credit extended to its customers by calculating the number of times receivables are collected during a period.