Which of the Following Is True of R²

question 26

Multiple Choice

Which of the following is true of R²?

• A)R² is also called the standard error of regression.
• B)A low R² indicates that the Ordinary Least Squares line fits the data well.
• C)R² usually decreases with an increase in the number of independent variables in a regression.
• D)R² shows what percentage of the total variation in the dependent variable, Y, is explained by the explanatory variables.

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Definitions:

Simplify

The process of reducing a mathematical expression or equation to its simplest form.

Compounded Annually

Refers to the process of calculating and adding interest to the principal sum of an investment or loan once every year.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Special Product Pattern

Recognizable forms or formulas used to multiply polynomials quickly and efficiently, often simplifying the multiplication process.