A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected: What is the value of the coefficient of determination?
A) 9.3104
B) 0.9754
C) 0.6319
D) 0.9513

Question

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected:    What is the value of the coefficient of determination?
A) 9.3104 
B) 0.9754 
C) 0.6319 
D) 0.9513

Quizplus · Accepted Answer

The coefficient of determination (R-squared) measures the proportion of variation in the dependent variable (sales) that is explained by the independent variable (number of contacts). Using regression analysis, the calculated R-squared value is 0.9513, which means that 95.13% of the variation in sales can be explained by the number of contacts. Therefore, the best choice is D.

A Sales Manager for an Advertising Agency Believes There Is