If the Total Sum of Squares (SST) in a Regression

question 4

Multiple Choice

If the total sum of squares (SST) in a regression equation is 81, and the residual sum of squares (SSR) is 25, what is the explained sum of squares (SSE) ?

• A)64
• B)56
• C)32
• D)18

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Definitions:

Straight-Line Depreciation

A strategy for spreading out the cost of a material asset through equal yearly payments over its period of usability.

Yearly Depreciation Expense

The amount of the cost of tangible assets apportioned for a specific fiscal year using methods like straight-line depreciation.

Depreciable Cost

The total cost of a tangible asset minus its estimated residual value, over which the cost is allocated during its useful life.

Double-Declining-Balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate, applying it to the remaining book value of an asset each year.