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)(in 1,000s)and commercial construction (in 1000s)(in 1,000s)as the explanatory variables.The estimated model is Lumber Sales = β₀ + β₁ Housing Starts + β₂Commercial Constructions + ε.The following ANOVA table summarizes a portion of the regression results. The explanatory variables (Housing Starts and Commercial Construction)together explained approximately _____% of the variations in the response variable (Lumber Sales).

Question

Quizplus · Accepted Answer

The R-squared value (also known as the coefficient of determination) is 0.82, which means that 82% of  the variation in Lumber Sales is explained by Housing Starts and Commercial Construction.

Assume You Ran a Multiple Regression to Gain a Better