Scenario 1: The demand model relating the quantity of good XYZ sold QXYZ) to the price of good PXYZ) is reported below:
QXYZ = 4.46 + .304 PXYZ

-Refer to Scenario 1. What is the total sum of squares?
A) 3860.8
B) 3718.9
C) 141.9
D) none of the above.

Question

Scenario 1: The demand model relating the quantity of good XYZ sold QXYZ) to the price of good PXYZ) is reported below:
QXYZ = 4.46 + .304 PXYZ
 
-Refer to Scenario 1. What is the total sum of squares?
A) 3860.8 
B) 3718.9 
C) 141.9 
D) none of the above.

Quizplus · Accepted Answer

The total sum of squares (SST) is the sum of the squared differences between each observation and the overall mean. In this scenario, the correct value is 3860.8.

Scenario 1: the Demand Model Relating the Quantity of Good