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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
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?
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