FRM-Regression analysis
Finance Junkie
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FRM-Regression analysis

Postby » Fri Mar 22, 2013 1:16 am

Which of the following statements regarding the coefficient of determination is least accurate? The coefficient of determination:

A) may range from −1 to +1.
B) is the percentage of the total variation in the dependent variable that is explained by the independent variable.
C) cannot decrease as independent variables are added to the model.
D) is the ratio of explained variation to total variation.

Finance Junkie
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FRM-Regression analysis

Postby content.pristine » Mon Mar 25, 2013 1:02 pm

A. It can only take values between 0 and 1.

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