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Choose the one alternative that best completes the statement or answers the question.
-A manufacturer of boiler drums wants to use regression to predict the number of man-hours needed to erect drums in the future. The manufacturer collected a random sample of 35 boilers and measured the following two variables:
MANHRS: yy = Number of man-hours required to erect the drum
PRESSURE: x1=\mathrm { x } _ { 1 } = Boiler design pressure (pounds per square inch, i.e., psi)
Initially, the simple linear model E(y) =β1+β1x1\mathrm { E } ( \mathrm { y } ) = \beta _ { 1 } + \beta _ { 1 \mathrm { x } 1 } was fit to the data. A printout for the analysis appears below:
UNWEIGHTED LEAST SQUARES LINEAR REGRESSION OF MANHRS
 PREDICTOR  VARIABLES  COEFFICIENT  STD ERROR  STUDENT’ST P CONSTANT 1.880590.583803.220.0028 PRESSURE 0.003210.001632.170.0300\begin{array}{c|c|c|c|c}\text { PREDICTOR } & & & & \\\text { VARIABLES } & \text { COEFFICIENT } & \text { STD ERROR } & \text { STUDENT'ST } & \mathrm{P} \\\hline \text { CONSTANT } & 1.88059 & 0.58380 & 3.22 & 0.0028 \\\text { PRESSURE } & 0.00321 & 0.00163 & 2.17 & 0.0300\end{array}

 R-SQUARED 0.4342 RESID. MEAN SQUARE (MSE)  4.25460 ADJUSTED R-SQUARED 0.4176 STANDARD DEVIATION 2.06267\begin{array} { l l l l } \text { R-SQUARED } & 0.4342 & \text { RESID. MEAN SQUARE (MSE) } & 4.25460 \\ \text { ADJUSTED R-SQUARED } & 0.4176 & \text { STANDARD DEVIATION } & 2.06267 \end{array}

 SOURCE  DF  SS  MS FP REGRESSION 1111.008111.0085.190.0300 RESIDUAL 34144.6564.25160 TOTAL 35255.665\begin{array}{l|r|c|c|c|c}\text { SOURCE } & \text { DF } & \text { SS } & \text { MS } & \mathrm{F} & \mathrm{P} \\\hline \text { REGRESSION } & 1 & 111.008 & 111.008 & 5.19 & 0.0300 \\\text { RESIDUAL } & 34 & 144.656 & 4.25160 & & \\\text { TOTAL } & 35 & 255.665 & & &\end{array}

Give a practical interpretation of the coefficient of determination, R2\mathrm { R } ^ { 2 } .


Definitions:

Tax Liability

The total amount of taxes an individual or organization owes to the tax authorities.

Income Subsidy

Financial assistance programs provided by governments or institutions to individuals or groups to help supplement their income, typically aimed at the needy or to promote certain economic activities.

After-Tax Income

The amount of net income left after all federal, state, and withholding taxes have been deducted from an individual's earnings.

Tax Liability

The total amount of taxes owed by an individual or a corporation to the tax authorities.

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