Question

An Economist is examining the energy consumption in different regions over different seasons. She ran a regression explaining the variation in energy consumption as a function of temperature. The total variation of the dependent variable was SST=140.58, the explained variation was SSR=60.16, and the unexplained variation was SSE=80.42. She had 60 monthly observations. The coefficient of determination is closest to?

A. 0.76
B. 0.65
C. 0.43

Answer 1

The coefficient of determination is: C. 0.43

Explanation:

The provided information is:

SST = 140.58 and SSE = 80.42

The coefficient of determination
`(r^2)` is determined by formula:

`r^2=1-(SSE)/(SST)\\\\=1-(80.42)/(140.58)\\\\=1-0.57\\\\=0.43`

Thus, coefficient of determination is closest to 0.43