Exhibit 15-2
A regression model between sales (Y in $1,000), unit price (X 1 in dollars) and television advertisement (X 2 in dollars) resulted in the following function: For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. The multiple coefficient of correlation for this problem is
A)0.70
B)0.8367
C)0.49
D)0.2289

Question

Exhibit 15-2
A regression model between sales (Y in $1,000), unit price (X 1 in dollars) and television advertisement (X 2 in dollars) resulted in the following function:  For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. The multiple coefficient of correlation for this problem is
A)0.70 
B)0.8367 
C)0.49 
D)0.2289

Quizplus · Accepted Answer

The multiple coefficient of correlation is given by the formula: r = sqrt((SSR - SSE)/SSR) = sqrt((3500-1500)/3500) = sqrt(0.5714) = 0.8367. Therefore, the correct answer is B.

Exhibit 15-2 A Regression Model Between Sales (Y in $1,000), Unit Price