The following table shows the number of cars sold last month by six dealers at Centreville Nissan dealership and their number of years of sales experience. Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience.The coefficient of determination for this sample is equal to _______.
A) 0.456
B) 0.519
C) 0.667
D) 0.712

Question

The following table shows the number of cars sold last month by six dealers at Centreville Nissan dealership and their number of years of sales experience.  Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience.The coefficient of determination for this sample is equal to _______.
A) 0.456 
B) 0.519 
C) 0.667 
D) 0.712

Quizplus · Accepted Answer

Using regression analysis, the coefficient of determination (R-squared) measures the proportion of the variation in the dependent variable (monthly car sales) that is explained by the independent variable (years of sales experience). The closer R-squared is to 1, the better the fit of the regression line. The R-squared value for this sample is 0.712, indicating a strong relationship between monthly car sales and years of sales experience. Thus, the best choice is D with an R-squared value of 0.712.

The Following Table Shows the Number of Cars Sold Last