In a multiple regression analysis involving 40 observations and 5 independent variables, total variation in y = SST = 350 and SSE = 50. The coefficient of determination is:
A)0.8408.
B)0.8571.
C)0.8469.
D)0.8529.

Question

Quizplus · Accepted Answer

The coefficient of determination, $R^2$, is calculated as $R^2 = 1 - \frac{SSE}{SST}$, where SSE is the sum of squares due to error and SST is the total sum of squares. Given SST = 350 and SSE = 50, $R^2 = 1 - \frac{50}{350} = 1 - \frac{1}{7} = \frac{6}{7} = 0.8571$.

In a Multiple Regression Analysis Involving 40 Observations and 5