Which
of the following statements is (are) true with respect
to the coefficient of determination?
I.
Coefficient of determination and correlation coefficient
must always have the same algebraic sign (i.e. plus
or minus).
II. As the sum of squares of the error terms increases,
coefficient of determination will increase as well.
III. Coefficient of determination measures the proportion
of the total variation in Y that is accounted for by
the variation in X.
IV. As the ratio of regression sum of squares to total
sum of squares increases, correlation coefficient will
increase.
a) II and III only.
b) I, II, and IV only.
c) III and IV only.
d) I and III only.
The correct answer is: c)
(I) is incorrect because coefficient of determination
will always be positive, whereas correlation coefficient
may be positive or negative.
RELATED FAQS

When a floor broker asks a specialist, “How’s PDQ?” ...
The correct answer is d) When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,” the quote meant ... 
A person purchases stock XYZ (an Over The Counter stock) from a company who is also ...
The correct answer is c When the firm is a market maker in the stock then it must act as a principle. Principal is the main ... 
An individual made a lumpsum deposit into a variable annuity of $25,000 ...
The correct answer is c). Early withdrawal from a nonqualified annuityprior to age 59½, except for death or disability, ... 
A church that a registered representative (RR) attends plans to raise the funds necessary ...
The correct answer is c) Although church bonds are normally considered to be exempt securities, the RR is obligated, by NASD ...
 No results found.