Question

An Economist is examining the energy consumption in different regions over different seasons. She ran a regression explaining the variation in energy consumption as a function of temperature. The total variation of the dependent variable was SST=140.58, the explained variation was SSR=60.16, and the unexplained variation was SSE=80.42. She had 60 monthly observations. The coefficient of determination is closest to?
A. 0.76
B. 0.65
C. 0.43

Answer 1

Answer:

The coefficient of determination is: C. 0.43

Step-by-step explanation:

The provided information is:

SST = 140.58 and SSE = 80.42

The coefficient of determination $(r^2)$ is determined by formula:

$r^2=1-\dfrac{SSE}{SST}\\\\=1-\dfrac{80.42}{140.58}\\\\=1-0.57\\\\=0.43$

Thus, coefficient of determination is closest to 0.43