A multiple regression model with four explanatory variables is estimated using 25 observations resulting in SSE = 660 and SST = 1,000. Which of the following is the correct value of R²? A) 0.16 B) 0.34 C) 0.66 D) 0.84

Question

Quizplus · Accepted Answer

R² is the squared multiple correlation coefficient, which measures the proportion of variance in the dependent variable (Y) that is explained by all the independent variables (X1, X2, X3, X4) together. The formula for the squared multiple correlation coefficient is R^2 = 1 - SSE/SST. Plugging in the given values, R^2 = 1 - 660/1000 = 0.34. Therefore, the correct answer is B.

A Multiple Regression Model with Four Explanatory Variables Is Estimated