Testing the significance of the regression model

Reference no: EM1315945

Question 1: The ANOVA summary table below is the result of a regression of sales on year of sales. Is the relationship statistically significant at .05? Comment.

Source of Variation	Sum of Squares	d.f.	Mean Square	F-Value
Explained by regression	605,370,750	1	605,370,750	3.12
Unexplained by regression	1,551,381,712	8	193,922,714
Total error		9

Question 2: A metropolitan economist is attempting to predict the average total budget of retired couples in Phoenix, based on the average U.S. urban retired couples' total budget. An r² of 0.7824 is obtained. Will the regression be a good predictive model?

Reference no: EM1315945

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