SCENARIO 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this,the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:

-Referring to Scenario 13-2,what is the percentage of the total variation in candy bar sales explained by the regression model?
A)100%
B)88.54%
C)78.39%
D)48.19%

Question

SCENARIO 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this,the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:
 
-Referring to Scenario 13-2,what is the percentage of the total variation in candy bar sales explained by the regression model?
A)100% 
B)88.54% 
C)78.39% 
D)48.19%

Quizplus · Accepted Answer

The percentage of total variation in candy bar sales explained by the regression model is given by the R-squared value, which is 78.39% in this scenario.

SCENARIO 13-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate