Data were collected for a sample of companies regarding their investment in quality improvement efforts and cost savings realized as a result (both measured as a percentage of sales revenue).The R² for the regression is 0.833.If the data were collected for individual departments within companies rather than at the company level, we would expect ________________________ . A)a higher R² B)a lower R² C)the same R² D)fewer outliers in the data E)None of the above.

Question

Quizplus · Accepted Answer

Collecting data at the department level introduces more variability due to differences in departmental operations and efficiencies, likely leading to a lower R-squared value, which measures the proportion of variance in the dependent variable that can be predicted from the independent variable.

Data Were Collected for a Sample of Companies Regarding Their