Question

What is the relationship between SST, SSR, and SSE? What is the implication if the coefficient...

  1. What is the relationship between SST, SSR, and SSE?
    • What is the implication if the coefficient of determination is 1?

Homework Answers

Answer #1

Solution:

Part a) What is the relationship between SST, SSR, and SSE?

Total sum of squares ( SST) is the sum of Sum of Squares due to Regression and Sum of Squares due to Errors

That is:

SST = SSR + SSE

Part b) What is the implication if the coefficient of determination is 1?

coefficient of determination is given by formula:

If the coefficient of determination is 1, then SST = SSR and

it means 100% of variation in dependent variable is explained by regression line.

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