The calculation of the coefficient of determination rsquared depends on the number of independent variables. An adjusted value of rsquared based on the number of degrees of freedom is calculated using the formula shown below, where n is the number of data pairs and k is the number of independent variables. The calculation of the coefficient of determination r2 depends on the number of independent variables. An adjusted value of r2 based on the number of degrees of freedom is calculated using the formula shown below,where n is the number of data pairs and k is the number of independent variables.[(1-?)(n-1)]= 1-adjn-k-1The accompanying table shows the net sales (in billions of dollars), total assets (in billions of dollars), and shareholder's equities (in billions of dollars) for a company for five years.Calculate rdi and determine the percentage of the variation in y that can be explained by the relationships between variables according to„2Compare this result with the one obtained using r2.adj·adjClick the icon to view the table.(Round to three decimal places as needed.) Shareholder's equity, yNet sales, x162.165.870.268.371.9372.1401.2403.4415.7444.6Total assets, x2160.3161.1173.9180.9193.9

Provided data is: y 62.1 65.8 70.2 68.3 71.9 x1 372.1 401.2 403.4 415.7 444.6 x2 160.3 161.1 173.9 180.9 193.9 Dependent variable is y which is shareholder’s equality, independent variables are x1 and x2 which are net sales and total assets respectively. The correlation coefficient for multiple regression can be obtained excel function as follows: Enter data into excel. Go to Data> Data Analysis > Regression> Enter input ranges. Obtained output is: From excel output r2 is obtained as 0.812.n is the number of data pairs and k is the number of independent variables. Thus, n=5 and k=2 for provided data. r2 adjusted can be calculated as: radj2=1-1-r2n-1n-k-1=1-1-0.81255-15-2-1=0.6250 Percentage of variation in y explained by independent variable is 62.50% according to r2 adjusted. And according to r2 it is 81.2%, Thus, r2 adjusted explains 18.7% less variation than r2 does.