In a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R²) of .70 means that 70% of the variance in advertising is explained by demand.

Question

Quizplus · Accepted Answer

The coefficient of determination (R²) of .70 means that 70% of the variance in the dependent variable (y-hat) is explained by the independent variable (x), not the other way around. Therefore, the statement is false.

In a Regression Equation Where Y-Hat Is Demand and X