In a Simple Linear Regression Problem, the Following Sum of Squares

question 65

Multiple Choice

In a simple linear regression problem, the following sum of squares are produced: , , and . The percentage of the variation in y that is explained by the variation in x is:

• A) 25%
• B) 75%
• C) 33%
• D) 50%

---

Definitions:

Salvage Value

The forecasted residual worth of an asset at the conclusion of its serviceable life.

Loss on Disposal

A financial loss that occurs when the selling price of an asset is less than its carrying amount.

Revenue Account

An account that shows the income generated by a business from its normal operational activities.

Fully Depreciated

A status of a fixed asset when its book value is reduced to zero through depreciation over its useful life, assuming it has no salvage value.