Scenario 1: The demand model relating the quantity of good XYZ sold (QXYZ)to the price of good (PXYZ)is reported below:

-Refer to Scenario 1.What is the coefficient of determination?
A)1.000
B)0.000
C)0.037
D)0.324

Question

Scenario 1: The demand model relating the quantity of good XYZ sold (QXYZ)to the price of good (PXYZ)is reported below:
 
-Refer to Scenario 1.What is the coefficient of determination?
A)1.000 
B)0.000 
C)0.037 
D)0.324

Quizplus · Accepted Answer

The coefficient of determination, often denoted as R^2, measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s). A value of 0.037 suggests that 3.7% of the variance in the dependent variable can be explained by the model, indicating a very weak explanatory power.

Scenario 1: the Demand Model Relating the Quantity of Good