Assume You Ran a Multiple Regression to Gain a Better

question 18

Multiple Choice

Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s) as the response variable with housing starts (in 1000s) (in 1,000s) and commercial construction (in 1000s) (in 1,000s) as the explanatory variables.The estimated model is Lumber Sales = β₀ + β₁ Housing Starts + β₂Commercial Constructions + ε.The following ANOVA table summarizes a portion of the regression results. The explanatory variables (Housing Starts and Commercial Construction) together explained approximately _____% of the variations in the response variable (Lumber Sales) .

• A) 18
• B) 22
• C) 78
• D) 82

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Definitions:

Mean

The average of a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.

Sample Data

A subset of data selected from a larger population, used for statistical analysis.

Geometric Mean

The nth root of the product of n numbers, used to calculate average rates of return or growth over time.

Closing Stock Price

The final price at which a stock is traded during a trading session on a stock exchange.