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: = 7 - 3x 1 + 5x 2
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. The multiple coefficient of determination for this problem is
A)0.4368
B)0.6960
C)0.3040
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:  = 7 - 3x 1 + 5x 2 
For this model SSR = 3500, SSE = 1500, and the sample size is 18.
-Refer to Exhibit 15-2. The multiple coefficient of determination for this problem is
A)0.4368 
B)0.6960 
C)0.3040 
D)0.2289

Quizplus · Accepted Answer

The total sum of squares (SST) is calculated as:

SST = SSR + SSE

SST = 3500 + 1500 = 5000

The multiple coefficient of determination (R-squared) is calculated as:

R² = SSR / SST

R² = 3500 / 5000

R² = 0.7

Therefore, the answer is B) 0.6960.

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