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:

Outgroups

Groups of people not belonging to the main or dominant group, often perceived as different or outside the main group.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed following group discussions.

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or made more likely to occur again by rewards or consequences.

Groupthink

A mental effect that happens among a group when their need for agreement or uniformity leads to choices that are illogical or ineffective.