A Simple Linear Regression Problem Produced the Following Sum of Squares

question 126

Short Answer

A simple linear regression problem produced the following sum of squares: $\sum \left( y _ { i } - \bar { y } \right) ^ { 2 }$ = 240, $\sum \left( y _ { i } - \hat { y } _ { i } \right) ^ { 2 }$ = 60, $\sum \left( \\\hat { y } _ { i } - \bar { y } \right) ^ { 2 }$ = 180
What percentage of the variation in y is explained by the regression line?

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Definitions:

Required Rate

The minimum return an investor expects to achieve on an investment.

Dividend Yield

A measurement comparing the yearly dividends issued by a business to its current market share price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have increased over a specific period of time.

Required Returns

The smallest yield an investor predicts to receive from investing in a particular venture or asset.