The regression analysis below characterizes the relationship between monthly ice
ID: 3437502 • Letter: T
Question
The regression analysis below characterizes the relationship between monthly ice cream consumption (in pints per household) and the independent variable "average monthly temperature" (in degrees Fahrenheit). The Multiple R value, 0.8409 tells us the correlation between the dependent and independent variables. The R-squared value is 71%.
Based on these measures, we can conclude that:
a)The variation in average monthly temperature explains about 71% of the variation in household ice cream consumption.
b) The variation in average monthly temperature explains about 84% of the variation in household ice cream consumption.
c) Predictions about future household ice cream sales will be correct within a 71% confidence interval.
d) Predictions about future household ice cream sales will be correct within an 84% confidence interval
Explanation / Answer
The R^2 value, also called the coefficient of determination, is the proportion of the variation of y explained by the variation in x.
Thus, the answer is A: THE VARIATION IN AVERAGE MONTHLY TEMPERATURE EXPLAINS ABOUT 71% OF THE VARIATION IN HOUSEHOLD ICE CREAM CONSUMPTION. [ANSWER, OPTION A]