Question

As a sales manager for GooGooLi Corporation, you have asked your sales analytics team to provide you with a predictive model of the factors that can help you predict the sales for the next quarter. In the report, your sales analytics experts have developed a new regression model that can explain the variation in quarterly sales better than the previous model. You decide to verify this by comparing the results of the new model (that explains sales variation better) with the older model. You expect to see the ________ for new model to be _________ than the old model.

Answer 1

As a sales manager for GooGooLi Corporation, you have asked your sales analytics team to provide you with a predictive model of the factors that can help you predict the sales for the next quarter. In the report, your sales analytics experts have developed a new regression model that can explain the variation in quarterly sales better than the previous model. You decide to verify this by comparing the results of the new model (that explains sales variation better) with the older model. You expect to see the R-square for new model to be higher than the old model.

Step-by-step explanation:

As the R square is the coefficient of the variation and it determines the percentage of explained variability of the data. It should be higher as the new model is the best fit to the data.