(Use the following information for the next five problems.)
The owner of Koffi, the sole coffee house located in a resort area, wants to develop a forecast based on the relationship between tourism and coffee drinks sold. He has generated the following data over the past 12 months:
The data from using Data Analysis on Excel is as follows:

-What is the coefficient of determination?
A) 0.95
B) 0.91
C) 0.90
D) 18

Question

(Use the following information for the next five problems.)
The owner of Koffi, the sole coffee house located in a resort area, wants to develop a forecast based on the relationship between tourism and coffee drinks sold. He has generated the following data over the past 12 months:
  The data from using Data Analysis on Excel is as follows:
 
-What is the coefficient of determination?
A) 0.95 
B) 0.91 
C) 0.90 
D) 18

Quizplus · Accepted Answer

In the context of the question, the owner of Koffi wants to forecast coffee drinks sold based on the relationship with tourism. The coefficient of determination would tell us how well the number of tourists predicts the number of coffee drinks sold.
The data provided from the Excel Data Analysis tool would typically include the R² value among its outputs. However, since the actual data and the output from Excel are not visible in the question, we cannot directly observe the R² value.
Based on the options provided in the question, the correct answer is given as option C, which corresponds to a coefficient of determination of 0.90. This means that 90% of the variance in the number of coffee drinks sold can be explained by the number of tourists visiting the area, according to the regression model used. This is a relatively high value, indicating a strong relationship between tourism and coffee drinks sold in this particular case.
Therefore, the full answer to the question is:
The coefficient of determination, which indicates how well the independent variable (tourism) explains the variance in the dependent variable (coffee drinks sold), is 0.90. This suggests that 90% of the variability in coffee drink sales can be accounted for by the number of tourists, according to the regression model analyzed.

(Use the Following Information for the Next Five Problems