A regression model between sales (y in $1000) , unit price (x₁ in dollars) , and television advertisement (x₂ in dollars) resulted in the following function: = 7 - 3x₁ + 5x₂

For this model, SSR = 3500, SSE = 1500, and the sample size is 18. The multiple coefficient of determination for this problem is

Question

A regression model between sales (y in $1000) , unit price (x₁ in dollars) , and television advertisement (x₂ in dollars) resulted in the following function:

A regression model between sales (y in $1000) , unit price (x<sub>1</sub> in dollars) , and television advertisement (x<sub>2</sub> in dollars) resulted in the following function: = 7 - 3x<sub>1</sub> + 5x<sub>2</sub> For this model, SSR = 3500, SSE = 1500, and the sample size is 18. The multiple coefficient of determination for this problem is A) .4368. B) .7000. C) .3040. D) .2289.

= 7 - 3x₁ + 5x₂

For this model, SSR = 3500, SSE = 1500, and the sample size is 18. The multiple coefficient of determination for this problem is

Quizplus · Accepted Answer

The formula for the multiple coefficient of determination is:

R-squared = SSR / SST

where SST = SSE + SSR, and SST is the total variation in the dependent variable (sales).

Substituting the given values in the formula, we get:

SST = 3500 + 1500 = 5000

R-squared = 3500 / 5000 = 0.7

Therefore, the multiple coefficient of determination is 0.7 or 70%.

The best choice is option B.

A Regression Model Between Sales (Y in $1000), Unit Price