of the following statements 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

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.




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