In Regression Analysis, If the Coefficient of Determination Is 1

question 14

Multiple Choice

In regression analysis, if the coefficient of determination is 1.0, which of the following statements can be deduced from this information?

• A) The sum of squares for error must be 1.0.
• B) The sum of squares for regression must be 1.0.
• C) The sum of squares for error must be 0.0.
• D) The sum of squares for regression must be 0.0.

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Definitions:

Long-Run Aggregate Supply

The total amount of goods and services produced in an economy at full employment, unaffected by price levels in the long term.

Nominal Wage

The wage that is paid to workers in current dollars, without adjustment for inflation.

Capital Stock

The total amount of physical, human, and intellectual capital that a country possesses at any given time.

Beneficial Supply Shock

An unexpected event that increases the production capacity and decreases the prices of goods and services.