Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. The adjusted R2 value was reported
As 83.3%. This means that
A) Selling price and amount spent advertising do not describe TV sales well.
B) 83.3% of the variance in TV sales can be accounted for by selling price.
C) 83.3% of the variance in TV sales can be accounted for by amount spent
Advertising.
D) 83.3% of the variance in TV sales can be accounted for by the model including
Both selling price and amount spent advertising.
E) Both selling price and amount spent advertising are significant predictors of TV
Sales.

Question

Quizplus · Accepted Answer

The adjusted R2 value being reported as 83.3% means that this percentage of the variance in TV sales can be accounted for by the model including both selling price and amount spent advertising. It does not mean that one predictor is more important than the other or that they are both significant predictors, but rather that the model as a whole is a good fit for the data. Therefore, option D is the best choice.

Selling Price and Amount Spent Advertising Were Entered into a Multiple