Brewsky's Is a Chain of Micro-Breweries -
What Is the Percent of the Total Variance That

question 8

Multiple Choice

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:
$\begin{array}{llr} \text { Average monthly customer visits } &&1,462\\ \text { Average monthly total costs } &&\$4,629\\& \text { Regression Results} &\\ \text { Intercept } &&\$1,496\\ \text { b coefficient } &&\$2.08\\ \text { R }^{2} &&0.86814\\\end{array}$

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What is the percent of the total variance that can be explained by the regression equation? (CMA adapted)

• A) 86.8%
• B) 31.6%
• C) 97.7%
• D) 71.9%

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Definitions:

Marginal Mean

The average value of a variable in a dataset, keeping other variables constant.

Low Crime Area

A geographic region characterized by significantly lower instances of criminal activity compared to the surrounding areas or national averages.

Factorial Designs

Experimental setups that allow researchers to examine the effects of two or more independent variables on a dependent variable simultaneously.

Single-Factor Designs

Experimental setups that involve only one independent variable to test its effect on a dependent variable.