We have data on 2323 randomly selected households consisting of three persons in 2013. Let ENTERT denote the monthly entertainment expenditure ($) per person per month and let INCOME ($100) be monthly household income. From the regression model, we find ENTERT = 9.820 + 0.503 INCOME From the summary statistics, we find SST = (ENTERT – ENTERT)² = 8691035 Σω SSE = E(ENTERT – ENTERT) = 7711432 a) Calculate R². How well does the regression model fit the data? How much of the household variation in entertainment expenses have we explained using the regression model? b) Using the answer to (a), calculate SSR.
We have data on 2323 randomly selected households consisting of three persons in 2013. Let ENTERT denote the monthly entertainment expenditure ($) per person per month and let INCOME ($100) be monthly household income. From the regression model, we find ENTERT = 9.820 + 0.503 INCOME From the summary statistics, we find SST = (ENTERT – ENTERT)² = 8691035 Σω SSE = E(ENTERT – ENTERT) = 7711432 a) Calculate R². How well does the regression model fit the data? How much of the household variation in entertainment expenses have we explained using the regression model? b) Using the answer to (a), calculate SSR.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:We have data on 2323 randomly selected households consisting of three persons in 2013. Let
ENTERT denote the monthly entertainment expenditure ($) per person per month and let
INCOME ($100) be monthly household income.
From the regression model, we find
ENTERT = 9.820 + 0.503 INCOME
From the summary statistics, we find
SST = (ENTERT – ENTERT)² = 8691035
SSE = (ENTERT – ENTERT)* = 7711432
a) Calculate R2. How well does the regression model fit the data? How much of the
household variation in entertainment expenses have we explained using the regression
model?
b) Using the ans wer to (a), calculate SSR.
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