Exhibit 14-7.Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s)as the response variable with housing starts (in 1000s)and commercial construction (in 1000s)as the explanatory variables.The results of the regression are: Refer to Exhibit 14-7.The explanatory variables (housing starts and commercial construction)together explained approximately _____% of the variations in the response variable (lumber sales).
A)18
B)22
C)78
D)82

Question

Exhibit 14-7.Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s)as the response variable with housing starts (in 1000s)and commercial construction (in 1000s)as the explanatory variables.The results of the regression are:  Refer to Exhibit 14-7.The explanatory variables (housing starts and commercial construction)together explained approximately _____% of the variations in the response variable (lumber sales).
A)18 
B)22 
C)78 
D)82

Quizplus · Accepted Answer

The coefficient of determination (R-squared) is 0.82, which means that the explanatory variables (housing starts and commercial construction) together explain approximately 82% of the variations in the response variable (lumber sales).