The following estimated regression equation relating sales to inventory investment and advertising expenditures was given. ŷ = 21 + 13x1 + 9x2 The data used to develop the model came from a survey of 10 stores; for those data, SST = 19,000 and SSR = 14,630. (a)For the estimated regression equation given, compute R2. R2 = ?? (b)Compute Ra2. (Round your answer to two decimal places.) Ra2 = ?? (c)Does the model appear to explain a large amount of variability in the data? Explain. (For purposes of this exercise, consider an amount large if it is at least 55%. Round your answer to the nearest integer.) The adjusted coefficient of determination shows that (??) % of the variability has been explained by the two independent variables; thus, we conclude that the model does explain a large amount of variability.
The following estimated regression equation relating sales to inventory investment and advertising expenditures was given. ŷ = 21 + 13x1 + 9x2 The data used to develop the model came from a survey of 10 stores; for those data, SST = 19,000 and SSR = 14,630. (a)For the estimated regression equation given, compute R2. R2 = ?? (b)Compute Ra2. (Round your answer to two decimal places.) Ra2 = ?? (c)Does the model appear to explain a large amount of variability in the data? Explain. (For purposes of this exercise, consider an amount large if it is at least 55%. Round your answer to the nearest integer.) The adjusted coefficient of determination shows that (??) % of the variability has been explained by the two independent variables; thus, we conclude that the model does explain a large amount of variability.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following estimated regression equation relating sales to inventory investment and advertising expenditures was given.
ŷ = 21 + 13x1 + 9x2
The data used to develop the model came from a survey of 10 stores; for those data, SST = 19,000 and
SSR = 14,630.
(a)For the estimated regression equation given, compute R2.
R2 = ??
(b)Compute Ra2. (Round your answer to two decimal places.)
Ra2 = ??
(c)Does the model appear to explain a large amount of variability in the data? Explain. (For purposes of this exercise, consider an amount large if it is at least 55%. Round your answer to the nearest integer.)
The adjusted coefficient of determination shows that (??) % of the variability has been explained by the two independent variables; thus, we conclude that the model does explain a large amount of variability.
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