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Regression analysis was applied between Y = demand for a product (in units), and

ID: 3323389 • Letter: R

Question

Regression analysis was applied between

  Y = demand for a product (in units), and

  X = the price of the product (in dollars).

Based on the above estimated regression equation, if price is increased by 2 dollars, then demand is expected to

increase by 8,000 units

decrease by 8 units

decrease by 8,000 units

increase by 8 units

3 points   

QUESTION 34

In a regression analysis, if SST = 900 and SSR = 450, then the coefficient of determination equals

0.45

0.50

2.00

2.50

a.

increase by 8,000 units

b.

decrease by 8 units

c.

decrease by 8,000 units

d.

increase by 8 units

Explanation / Answer

33) Option-D) increase by 8 units

34) coefficient of determination = SSR / SST = 450 / 900 = 0.5

Option-B) 0.5