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Question: Which of the following statement(s) is/are true?
I. A residual is the difference between the actual value y and the mean of the y values y‾.
II. A regression line is also called a least squares line.
III. The coefficient of determination is the ratio of the explained variation to the unexplained varaition.
IV. Coefficient of determination is usually expressed as a percentage.


A ) I, II and IV only
B ) II and IV only
C ) II, III and IV only
D ) I, II and III only

Steps to derive

1 A residual (y - y′) is the difference between the actual value y and the predicted value y′.

2 A regression line is also called a least squares line.

3 The coefficient of determination is the ratio of the explained variation to the total variation and is denoted by r2.
r2 = explained variationtotal variation

4 Coefficient of determination r2, is usually expressed as a percentage.



Hence the right answer is Option B

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