Statistical Measures Used to Evaluate Regression Analysis Flashcards
1
Q
Coefficient of Correlation (r)
A
measures strength of linear relationship between independent variable (x) and dependent variable (y)
2
Q
Range of (r) is
A
from -1.0 to +1.0
\+1.0 = perfect positive correlation -1.0 = perfect negative correlation
(r) is Normally positive in accounting
3
Q
Coefficient of Determination (R squared)
A
portion of total variation in the dependent variable (y) explained by the independent variable (x)
4
Q
The Value of Coefficient of Determination (R squared)
A
is between zero and one
5
Q
The greater the R squared
A
the greater the portion of total variation in y explained by x
