Selling price and amount spent advertising were entered into

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. Use the output shown below, calculate the amount of variability in Sales is explained by the estimated multiple regression model.

Analysis of Variance

Source                      DF          SS                 MS

Regression                 2             16477.3            8238.7

Residual Error           27               3038.0              112.5

Total                          29          19515.4         

A )15.57%

B) 29%

C) 6.90%

D) 84.43%

Solution

amount of variabliltiy explained by model = R-square = SSR/SST = 16477.3 / 19515.4 = 0.84432294495629092921

D) 84.43%