On a typical night in a large city, about 25,000 people attend a theatrical even
ID: 2922963 • Letter: O
Question
On a typical night in a large city, about 25,000 people attend a theatrical event, paying an average cost of over $75 per ticket. The results of a multiple regression of weekly data for the receipts in millions of dollars, the paid attendance in thousands, the number of shows, and the average ticket price are found below. Use the results of the multiple regression to complete.
c) In a week in which the paid attendance was 200,000 customers attending 30 shows at an average ticket price of $70,what would you estimate the receipts would be? About $10.3628 million. (I got this answer but need help with the Multiple choices below)
Is this likely to be a good prediction? Why do you think that? (Use the Multiple Regression Model below to assist in choosing the right answer)
A). No, because the low R2 value indicates that the model accounts for little of the variation in the receipts.
B) No, because the high R2 value indicates that the model accounts for little of the variation in the receipts.
C). Yes, because the low R2 value indicates that the model accounts for almost all of the variation in the receipts.
D). Yes, because the high R2 value indicates that the model accounts for almost all of the variation in the receipts.
Dependent variable is: Receipts R squared = 99.9% R squared (adjusted)-99.9% s = 0.0883 with 74 degrees of freedom Sum of Squares 484.638 F-ratio 20711 df Source Regressior Residual Mean Square 0.0078 t-ratio 3 161.5460 0.57774 P-value 56.07Explanation / Answer
The R - square value is 99.99% which is very close to 100%. Hence,
Yes, because the high R2 value indicates that the model accounts for almost all of the variation in the receipts.
Option D is correct.