When the R² of a Regression Equation Is Very High,it

question 64

Multiple Choice

When the R² of a regression equation is very high,it indicates that

• A)all the coefficients are statistically significant.
• B)the intercept term has no economic meaning.
• C)a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables.
• D)there is a good chance of serial correlation and so the equation must be discarded.

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Definitions:

Credit Balance

An accounting balance where the sum of credits exceeds the sum of debits in an account, often indicating money owed to the account holder.

Salaries Payable

A liability account that represents the amount owed to employees for work performed but not yet paid.

Reversing Entry

An accounting entry made at the beginning of an accounting period to negate the effects of certain adjusting entries made in the previous accounting period.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.