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

question 108

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:
$$\begin{array} { | l | r | } \hline \text { Average monthly c ustomer-visits } & 1,462 \\\hline \text { Average monthly total costs } & \$ 4,629 \\\hline \text {Regression Results } & \\\hline \text { Intercept } & \$ 1,496 \\\hline \text { bcoefficient } & \$ 2.08 \\\hline R ^ { 2 } & 0.86814 \\\hline\end{array}$$

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:

Formal Operational Stage

The last stage in Piaget's theory of cognitive development, characterized by the ability to think logically about abstract concepts.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present.

Logical Thinking

The process of using systematic reasoning to reach a conclusion or solve problems.

Irreversibility

In Piaget’s theory, the inability of the young child to mentally reverse an action.