In a regression and correlation analysis, if r² = 1, then A) SSE must also be equal to one. B) SSE must be equal to zero. C) SSE can be any positive value. D) SSE must be negative.

Question

Quizplus · Accepted Answer

If r² = 1, it means there is a perfect positive correlation between the variables ^{2 and}, i.e., they move in the same direction with a constant slope. In such a case, the residuals will be zero for all observations, and hence, sum of squared errors (SSE) will also be zero. Therefore, option B is correct, and options A, C, and D are incorrect.

In a Regression and Correlation Analysis, If R2 = 1

In a Regression and Correlation Analysis, If R² = 1