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The researchers want to predict how much a motion picture will make. The statist

ID: 3323621 • Letter: T

Question

The researchers want to predict how much a motion picture will make. The statistics computed below use data from a number of recent releases that includes the USGross (in $), the Budget ($), the Run Time (minutes), and the average number of stars awarded by reviewers. Choose the correct explanation of R2 and adjusted R2

A.The least squares regression on Budget, Run Time, and Stars will accurately predict USGross 46.1% of the time.

B.The probability that USGross is greater than the least squares regression on Budget, Run Time, and Stars is 47.6%.

C.About 47.6% of the variation in USGross is accounted for by the least squares regression on Budget, Run Time, and Stars.

D.Adjusted R2 uses the significant predictors with small P-values, so it differs from R2, which does not.

E.Adjusted R2 accounts for the number of predictors, so it differs from R2, which does not.

Dependent variable is: USGross (5) Rsquared=47.6% Rsqua red (adjusted) = 46.1% s = 46.54 with 120-4 = 1 16 degrees of freedom

Explanation / Answer

Correct explanation of R2:

About 47.6% of the variation in USGross is accounted for by the least squares regression on Budget, Run Time, and Stars.

Correct explanation of R2 adjusted:

Adjusted R2 uses the significant predictors with small P-values, so it differs from R2, which does not.