Using Excel, the manager of Quick Breaks Coffees has estimated the daily demand function for its regular coffees; the results are shown in the table above. Which of the following statements is correct?
A)The predicted values from the regression account for 95 percent of the variation in the actual data.
B)The predicted values from the regression account for 98 percent of the variation in the actual data.
C)The estimated regression has a very poor fit to the data.
D)The predicted values lie far from the actual values.

Question

Quizplus · Accepted Answer

The statement indicates that the predicted values from the regression account for 95 percent of the variation in the actual data, which suggests a good fit of the model to the data.

Using Excel, the Manager of Quick Breaks Coffees Has Estimated