Question

Brewsky's is a chain of micro-breweries. Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patronizing the stores. Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis and the analysis is as follows: Average monthly customer visits 1,462 Average monthly total costs $ 4,629 Regression Results Intercept $ 1,496 b coefficient $ 2.08 R2 0.86814 What is the percent of the total variance that can be explained by the regression equation

Answer 1

The answer is "88.9%"

Explanation:

The Variance percentage indicates through the REgression equation but, the R-Square, it becoming the determination coefficient. 88.871% of the variance could be explained according to the above results.