Using advertised prices for used Ford Escorts a linear model for the relationship between a car's age and its price is found.The regression has an $\mathrm { R } ^ { 2 }$ = 85.8%.Why doesn't the model explain 100% of the variation in the price of an Escort?
A)The model was calculated incorrectly.It should explain all the variation in price.
B)The model is only right 85.8% of the time.
C)14.2% of the time the buyer is getting ripped off by an unscrupulous seller.
D)The prices of all used Ford Escorts were not used.
E)There are other factors besides age that affect the price.These include things such as mileage,options,and condition of the car.

Question

Quizplus · Accepted Answer

The model doesn't explain 100% of the variation in the price of an Escort because there are other factors besides age that affect the price, such as mileage, options, and condition of the car.

Using Advertised Prices for Used Ford Escorts a Linear Model R2\mathrm { R } ^ { 2 }R2

Using Advertised Prices for Used Ford Escorts a Linear Model $\mathrm { R } ^ { 2 }$