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I am going to take the BEC section this coming July. Right now, I am practicing AICPA released questions posted on Becker’s Web site. I started with 2007 questions and now doing 2012 questions. While I appreciate Becker’s efforts to publish answers with explanations (but not for 2012 questions because of timing), I have felt some of Becker’s explanations are not correct. I found one of this kind for REG among the past year released questions (I forgot which year but this was regarding the corporate basis) and especially this tendency is more dominant with BEC.
In 2012 release questions, the first question goes as,
1. CPA
The coefficient of determination, r squared, in a multiple regression equation is the:
a. Percentage of variation in the independent variables explained by the variation in the dependent
variable.
b. Percentage of variation in the dependent variable explained by the variation in the independent
variables.
c. Measure of the proximity of actual data points to the estimated data points.
d. Coefficient of the independent variable divided by the standard error of regression coefficient.
Explanation
Choice “b” is correct.
But I believe the correct answer is “c” because the question is asking about “coefficient of determination” Since the coefficient of determination is expressed as 1- (Sum of squared difference between actual and predicted vales derived from the binominal equation) / (squared sum of actual values), this is the goodness of fit. But it seems Becker confused the coefficient of determination with the coefficient of correlation. I need to know if I am wrong.
I am studying with only Wiley and passed REG for 91 in May 2012. For REG, Wiley is especially hard to read because of the layout and ways of explanations (The tend to explain the simple things in a way difficult to understand and similar concepts are scattered all over the different pages), but they do not have such fundamental mistakes as above (except within manageable numbers of typos).
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