Which of the Following Statements About the Coefficient of Determination

question 29

Multiple Choice

Which of the following statements about the coefficient of determination (R²) is correct?

• A) R² is a measure of economic plausibility.
• B) The higher the R², the more confident we are when using a regression model to predict costs.
• C) R² is a measure of data accuracy.
• D) R² is a useful measure only for simple regressions.

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, often leading to increased interconnectedness and interdependence among nations.

Transnational Communities

Groups of people who maintain connections across national borders, often sharing a common culture, language, or origin, while living in multiple countries.

Global Stratification

The hierarchical arrangement of individuals and countries around the world, based on wealth, power, and prestige.

Terrorism

Employing force and threats, particularly towards non-combatants, to achieve political objectives.