A major car magazine has recently collected data on 30 leading cars in the U.S.market.It is interested in building a multiple regression model to explain the variation in highway miles.The following correlation matrix has been computed from the data collected:
If only one independent variable (ignoring city mileage)is to be used in explaining the dependent variable in a regression model,the percentage of variation that will be explained will be nearly 74 percent.

Question

A major car magazine has recently collected data on 30 leading cars in the U.S.market.It is interested in building a multiple regression model to explain the variation in highway miles.The following correlation matrix has been computed from the data collected:
  If only one independent variable (ignoring city mileage)is to be used in explaining the dependent variable in a regression model,the percentage of variation that will be explained will be nearly 74 percent.

Quizplus · Accepted Answer

The correlation coefficient between highway miles and any single independent variable (ignoring city mileage) is less than 0.9. Therefore, it is not possible for a regression model with only one independent variable to explain 74% or more of the variation in highway miles.

A Major Car Magazine Has Recently Collected Data on 30