Question

The following estimated regression equation relating sales to inventory investment and advertising expenditures was given.

ŷ = 25 + 11x₁ + 9x₂

The data used to develop the model came from a survey of 10 stores; for those data, SSyy (Total Sum of Squares) = 16,000 and SSR (Regression Sum of Squares) = 11,360.

(a)

For the estimated regression equation given, compute R².(Round your answer to two decimal places.)

R² = ____

(b)

Compute the adjusted r-square, R_a². (Round your answer to two decimal places.)

R_a² = ____

(c)

Does the model appear to explain a large amount of variability in the data? Explain. (For purposes of this exercise, consider an amount large if it is at least 55%. Round your answer to the nearest integer.)

The adjusted coefficient of determination shows that ____% of the variability has been explained by the two independent variables; thus, we conclude that the model (Does/Does not) explain a large amount of variability.

Answer 1