In a regression equation where Y is demand and X is advertising, a coefficient of determination (R²) of .70 means that 70% of the variance in advertising is explained by demand.

Question

Quizplus · Accepted Answer

The coefficient of determination (R-squared) measures the proportion of variance in the dependent variable (Y) that is explained by the independent variable(s) (X). Therefore, a coefficient of determination of .70 means that 70% of the variance in Y (demand) is explained by X (advertising), not the other way around.

In a Regression Equation Where Y Is Demand and X