TABLE 12-2
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 six 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 12-2, what is the percentage of the total variation in candy bar sales explained by the regression model?
A) 100%
B) 88.54%
C) 78.39%
D) 48.19%

Question

TABLE 12-2
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 six 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 12-2, what is the percentage of the total variation in candy bar sales explained by the regression model?
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 the regression model is represented by the R-squared value, which is 78.39% in this case.

TABLE 12-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate