What Happens as the Scatter of Data Values About the Regression

question 117

Multiple Choice

What happens as the scatter of data values about the regression plane increases?

• A) Standard error of estimate increases.
• B) R²decreases.
• C) (1 -R²) decreases.
• D) Residual sum of squares decreases.
• E) (1 -R²), residual sum of squares and standard error of estimate all increase, andR²decreases.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency of an investment or compare different investments.

Residual Income

Earnings that exceed the minimum acceptable return on an investment or project, often used in performance measurement and compensation.

Managerial Performance

An evaluation of a manager's effectiveness in meeting organizational goals and managing resources efficiently.

Investment Centers

Parts of an organization that are responsible for their revenue, expenses, and investment in assets, allowing for a close measure of profitability.