Value of r-square indicates the amounts of variation

Reference no: EM1320886

The value of R-square indicates the amounts of variation in the dependent variable that is explained by the independent variable.

You have been provided with the following regression output. The dependent variable is unit sales of a product, and the independent variable is the dollar value of newspaper advertising for that product. The unit of analysis is weeks; that is, each of the observations in the underlying sample data represents a separate week of sales and newspaper advertising.
Regression Analysis: Sales versus Newspaper
The regression equation is
Sales = 6514 + 0.0386 Newspaper

Predictors	Co-eff	SECo-eff	T	P
Constant	6514	1138	5.72	0.000
Newspaper	0.038625	0.005494	7.03	0.00

S = 5630.70 R-Sq = 24.3% R-Sq(adj) = 23.8%

Analysis of Variance

Source	D F	S S	M S	F	P
Regression	1	1567134272	1567134272	49.43	0.000
Residual Error	154	4882532724	31704758
Total	155	6449666996

How much variability will you have if you predict sales with this model?

Reference no: EM1320886

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