Use the Following to Answer the Question(s) Below

question 7

Multiple Choice

Use the following to answer the question(s) below.
A linear regression model was fit to data representing technology adoption over time. The regression output and residual plot appears below.
-Which of the following is true?

• A) The linear model explains 82.5 % of the variability in technology adoption.
• B) The linear model is appropriate.
• C) The linear model is not appropriate.
• D) The linear model explains 82.5 % of the variability in technology adoption and the linear model is appropriate.
• E) The linear model explains 82.5 % of the variability in technology adoption and the linear model is not appropriate.

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Definitions:

Unearned Revenue

Money received by a company for products or services that have not yet been delivered or completed, considered a liability until the revenue is earned.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but are not yet recorded.

Adjustment Data

Information used to make corrections or changes to financial records and statements, ensuring accurate reporting.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made for accruals, deferrals, and other adjustments.