What Is R²

question 14

Multiple Choice

What is R²?

• A) The percentage of variance in the predictor accounted for by the outcome variable
• B) The proportion of variance in the outcome accounted for by the predictor variable or variables
• C) The proportion of variance in the predictor accounted for by the outcome variable
• D) The percentage of variance in the outcome accounted for by the predictor variable or variables

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Definitions:

Implicit Costs

The opportunity costs that are not directly paid for in cash but represent the loss of alternative benefits when resources are used for a particular purpose.

Explicit Costs

Direct, out-of-pocket payments for goods and services that are used in the production of other goods or services.

Accounting Profit

The financial profit of a business calculated by subtracting total expenses from total revenue, as shown in the company's income statement.

Economic Profit

A measure of profitability calculated by subtracting both explicit and implicit costs from total revenues, reflecting the true economic performance of a business.