When predicting sales (Y) with five independent variables (X1 - X5), a multiple R-square of 0.493 would indicate that
A) about 49% of the total variation in sales is explained by the independent variables
B) about 70% of the total variation in sales is explained by the independent variables
C) about 49% of the sales forecast cannot be explained at all
D) about 50% of the independent variables should not be used

Question

Quizplus · Accepted Answer

A multiple R-square of 0.493 indicates that approximately 49.3% of the variability in the dependent variable (sales) is explained by the independent variables (X1 - X5).

When Predicting Sales (Y) with Five Independent Variables (X1 -