Use the table below to answer the following question(s).
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000.She expects a salary increase of 5 percent every year.Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent.She expects an annual return of 7 percent on her retirement portfolio.Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change.
$$\begin{array}{l}
\text { Retirement Plan Model for Sheila }\
\begin{array} { | l | l | }
\hline \text { Data } & \
\hline \text { Retirement Contribution ( percent of salary) } & \
\hline \text { Employer Match } & 9 \text { percent } \
\hline \text { Annual Salary Increase } & 32 \text { percent } \
\hline \text { Annual Return on Investment } & 5 \text { percent } \
\hline & 7 \text { percent } \
\hline
\end{array}
\end{array}$$
-Which of the following is true of the R-squared (R²)value in Excel's Trendline function?
A)A value of 1.0 for R² indicates maximum deviation of the data from the line.
B)If the value of R² is above 1.0, the line will be at a perfect fit for the data.
C)The value of R² will always be between -1 and 1.
D)As the value of R² gets higher, the line will be a better fit for the data.

Question

Use the table below to answer the following question(s).
Sheila joined Simsin Tradings at the age of 36 with a starting salary of $75,000.She expects a salary increase of 5 percent every year.Her retirement plan requires her to pay 9 percent of her salary, while the company matches it at 32 percent.She expects an annual return of 7 percent on her retirement portfolio.Using a predictive model for Sheila's first five years, calculate the following, assuming that the salary increases at the same rate every year, and the return of interest does not change.
 $$\begin{array}{l}
\text { Retirement Plan Model for Sheila }\
\begin{array} { | l | l | } 
\hline \text { Data } & \
\hline \text { Retirement Contribution ( percent of salary) } & \
\hline \text { Employer Match } & 9 \text { percent } \
\hline \text { Annual Salary Increase } & 32 \text { percent } \
\hline \text { Annual Return on Investment } & 5 \text { percent } \
\hline & 7 \text { percent } \
\hline
\end{array}
\end{array}$$
-Which of the following is true of the R-squared (R²)value in Excel's Trendline function?
A)A value of 1.0 for R² indicates maximum deviation of the data from the line.
B)If the value of R² is above 1.0, the line will be at a perfect fit for the data.
C)The value of R² will always be between -1 and 1.
D)As the value of R² gets higher, the line will be a better fit for the data.

Quizplus · Accepted Answer

R-squared (R²) is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model. The value of R² ranges between 0 and 1, where 0 indicates that the model explains none of the variability and 1 indicates that the model explains all the variability. As the value of R² gets higher, the line will be a better fit for the data. Therefore, the correct choice is D. Choices A, B, and C are incorrect because they are not true statements about the R-squared (R²) value in Excel's Trendline function.

Use the Table Below to Answer the Following Question(s) -Which of the Following Is True of the R-Squared (R²)value