10-18 In regression analysis, the coefficient of determination: a. Is used to determine the proportion of the total variation in the dependent variable (y) explained by the independent variable (X). b. Ranges between negative one and positive one. c. Is used to determine the expected value of the net income based on the regression line. d. Becomes smaller as the fit of the regression line improves.

10-18 In regression analysis, the coefficient of determination: a. Is used to determine the proportion of the total variation in the dependent variable (y) explained by the independent variable (X). b. Ranges between negative one and positive one. c. Is used to determine the expected value of the net income based on the regression line. d. Becomes smaller as the fit of the regression line improves.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 15MCQ: (Appendix 3A) In the method of least squares, the coefficient that tells the percentage of variation...

See similar textbooks

Similar questions

11-8 The reward-to-risk ratio is also sometimes called the Select one: a. Sharpe ratio. b. risk premium. c. coefficient of variation. d. Treynor index. e. Gordon ratio.
(Appendix 3A) In the method of least squares, the coefficient that tells the percentage of variation in the dependent variable that is explained by the independent variable is a. the intercept term. b. the x-coefficient. c. the coefficient of correlation. d. the coefficient of determination. e. None of these.
10.7 Calculating Returns and Variability Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y: Returns Year X Y 1 12% 14% 2 24 29 3 -27 -33 4 14 17 5 19 37
25, According to the mean-variance criterion, which one of the following investments dominates all others? a. E(r) = .15; Variance = .2 b. E(r) = .1; Variance = .2 c. E(r) = .1; Variance = .25 e. none of these dominates the other alternatives
Q10) Regression analysis measures cost behavior more reliable than other methods. Select one: True False
In a simple linear regression based on 20 observations, it is found b1 = 3.05 and se(b1) = 1.30. Consider the hypothesis : H0 : β1 = 0 and HA : β1 ≠ 0 . Calculate the value of the test statistic.
Returns Year X y 1 17 % 20 % 2 20 32 3 11 15 4 – 7 – 18 5 10 22 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.
1. Over the past 3 years an investment returned 0.18, -0.11, and 0.08. What is the variance of returns?
Suppose the gain from an investment is a normal random variable with mean 2 and standard deviation1.25. Compute the VaR for this investment.
16. The following is the simple regression results based on the data from Madrigal Corporation: Dependent variable – Machine maintenance costsIndependent variable – Machine hoursComputed valuesIntercept P 3,500Coefficient on independent variable P 3.50Coefficient of correlation 0.856R2 0.733 What percentage of the variation in maintenance costs is explained by the independent variable?
Coefficient of Variation A standardized measure of the risk per unit of return. Coefficient of Variation = Standard deviation () Expected return (ř) Coefficient of Variation FLI (11.80%/ 14.55%) 81.10% WEB (16.52%/22.00%) 75.10
The variance of returns for a risky asset is 45%. The variance of the error term, Var(e) is 25%. What portion of the total risk of the asset, as measured by variance, is SYSTEMATIC? (Hint: Answer is a %.)