Exhibit 16-1
In a regression analysis involving 25 observations, the following estimated regression equation was developed. Also, the following standard errors and the sum of squares were obtained.
S b1 = 3
S b2 = 6
S b3 = 7
SST = 4,800
SSE = 1,296
-Refer to Exhibit 16-1. The multiple coefficient of determination is
A)0.27
B)0.73
C)0.50
D)0.33

Question

Exhibit 16-1
In a regression analysis involving 25 observations, the following estimated regression equation was developed.  Also, the following standard errors and the sum of squares were obtained.
S b1 = 3
S b2 = 6
S b3 = 7
SST = 4,800
SSE = 1,296
-Refer to Exhibit 16-1. The multiple coefficient of determination is
A)0.27 
B)0.73 
C)0.50 
D)0.33

Quizplus · Accepted Answer

The multiple coefficient of determination (R-square) is calculated as 1 - (SSE/SST). Plugging in the values given, we get 1 - (1,296/4,800) = 0.73. Therefore, the multiple coefficient of determination is 0.73 or 73%.

Exhibit 16-1 In a Regression Analysis Involving 25 Observations, the Following Estimated