A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates the model: Salary = β₀ +β₁ Advertising + ε.The following ANOVA table below shows a portion of the regression results. How much of the variation in Salary is unexplained by the model? A) 1% B) 2% C) 18.39% D) 77.94%

Question

Quizplus · Accepted Answer

The ANOVA table shows that the total variation (SS total) in Salary is 1,086,206.30. The variation explained by the model (SS regression) is 243,345.16. Therefore, the variation unexplained by the model (SS residual) is SS total - SS regression = 842,861.14. The proportion of variation unexplained by the model is (SS residual / SS total) x 100% = 77.94%. Therefore, the correct answer is D.

A Manager at a Local Bank Analyzed the Relationship Between