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artcher [175]
1 year ago
13

what does the adjusted r squared tell us about the relationship between sales, price, and advertising? the model explains about

90% of the variance in sales. the model explains about 60% of the variance in sales. the model explains about 80% of the variance in sales. the model explains about 70% of the variance in sales.
Mathematics
1 answer:
svp [43]1 year ago
5 0

The modified r squared tells us more about the relationship among sales, price, as well as advertising by explaining approximately 60% of a variance in sales.

<h3>Define the term adjusted r squared?</h3>

R-squared (R2) would be a statistical measure that quantifies the proportion of the variation explained from an independent variable other variables within a regression model for a dependent variable.

  • R-squared describes how much the variance with one variable describes the variance of the other.
  • So, if a model's R2 is 0.50, the model's inputs can explain roughly half of a observed variation.
  • A score of 70 to 100 shows that a specific portfolio closely reflects the underlying stock index, whereas a score of 0 to 40 indicates a relatively poor correlation the with index.
  • Higher R-squared scores also suggest that beta measurements are more reliable. The volatility of either a security or portfolio is measured by beta.

Thus, the modified r squared tells us more about the relationship among sales, price, as well as advertising by explaining approximately 60% of a variance in sales.

To know more about the adjusted r squared, here

brainly.com/question/14364216

#SPJ4

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