TABLE 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
-Referring to Table 13-2, what percentage of the total variation in candy bar sales is explained by prices?
A) 100%
B) 88.54%
C) 78.39%
D) 48.19%

Question

TABLE 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: 
-Referring to Table 13-2, what percentage of the total variation in candy bar sales is explained by prices?
A) 100% 
B) 88.54% 
C) 78.39% 
D) 48.19%

Quizplus · Accepted Answer

The percentage of total variation in candy bar sales explained by prices is typically represented by the R-squared value in a regression analysis. Here, 78.39% is likely the R-squared value indicating the proportion of variance explained by the model.

TABLE 13-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate