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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