Question

While browsing through the magazine rack at a bookstore, a statistician decides to examine the relationship between the price of a magazine and the percentage of the magazine space that contains advertisements. The data collected for eight magazines are given in the following table. Here price is the dependent variable.

Percentage containing ads	37	40	58	45	65	30	64	35
Price ($)	5.50	6.95	4.95	5.75	3.95	8.25	5.50	6.75

a. Find the standard deviation of errors.

Round your answer to two decimal places.

se=Enter you answer; standard deviation of errors

b. Compute the coefficient of determination. What percentage of the variation in price is explained by the least squares regression of price on the percentage of magazine space containing ads? What percentage of this variation is not explained?

Round your answer forr2to two decimal places, and your answers for the percentages to the nearest integer.

r2=Enter you answer; coefficient of determination

Enter you answer; What percentage of the variation in price is explained by the least squares regression? % is explained by the least squares regression.

Enter you answer; What percentage of the variation in price is not explained by the least squares regression? % is not explained by the least squares regression.

Answer 1

The statistical software output for this problem is:

Hence,

a) se = 0.81

b) r2 = 0.68

Explained variation = 68 %

Unexplained variation = 32 %