The owner of a movie theater company used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated regression equation was ŷ = 83.7 + 2.23x1 + 1.60x2. The computer solution, based on a sample of eight weeks, provided SST = 25.4 and SSR = 23.445. (a)Compute and interpret R2 and Ra2.(Round your answers to three decimal places.) The proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??) . Adjusting for the number of independent variables in the model, the proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??).
The owner of a movie theater company used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated regression equation was ŷ = 83.7 + 2.23x1 + 1.60x2. The computer solution, based on a sample of eight weeks, provided SST = 25.4 and SSR = 23.445. (a)Compute and interpret R2 and Ra2.(Round your answers to three decimal places.) The proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??) . Adjusting for the number of independent variables in the model, the proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The owner of a movie theater company used multiple regression analysis to predict gross revenue
(y)
as a function of television advertising
(x1)
and newspaper advertising
(x2).
The estimated regression equation wasŷ = 83.7 + 2.23x1 + 1.60x2.
The computer solution, based on a sample of eight weeks, provided SST = 25.4 and SSR = 23.445.
(a)Compute and interpret R2 and Ra2.(Round your answers to three decimal places.)
The proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??) . Adjusting for the number of independent variables in the model, the proportion of the variability in the dependent variable that can be explained by the estimated multiple regression equation is (??).
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