Question #73 - Reading 1 Multiple Regression

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 34

Status: Unattempted

Correct Answer: A

Shared Context

- Based upon the information presented in the ANOVA table, what is the coefficient of determination? A) 0.084, indicating that the variability of industry returns explains about 8.4% of the variability of company returns. B) 0.916, indicating that the variability of industry returns explains about 91.6% of the variability of company returns. C) 0.839, indicating that company returns explain about 83.9% of the variability of industry returns.

Question

Based upon her analysis, Carter has derived the following regression equation: Ŷ = 1.75 + 3.25X1. The predicted value of the Y variable equals 50.50, if the:

Answer Choices:

A. predicted value of the independent variable equals 15

B. predicted value of the dependent variable equals 15

Explanation

Note that the easiest way to answer this question is to plug numbers into the equation. The predicted value for Y = 1.75 + 3.25(15) = 50.50. The variable X1 represents the independent variable.

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