Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales, housing starts, and commercial construction. The regression uses lumber sales (in $100,000s) as the response variable with housing starts (in 1,000s) and commercial construction (in 1,000s) as the explanatory variables. The estimated model is Lumber Sales = β₀ + β₁Housing Starts + β₂Commercial Constructions + ε. The following ANOVA table summarizes a portion of the regression results. The sample regression equation explains approximately ________% of the variation in the response Lumber Sales. A) 18 B) 22 C) 78 D) 82

Question

Quizplus · Accepted Answer

The ANOVA table shows that the regression has an R-squared value of 0.82, indicating that the model explains approximately 82% of the variation in lumber sales. Therefore, the best choice is D.

Assume You Ran a Multiple Regression to Gain a Better