If Jane is not maximizing her utility with the original purchase combination, remembering the Law of Diminishing Marginal Utilit
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Answer:
For this case the value of r = -0.66
Now we can calculate the determination coeffcient:
And then we can conclude that 43.56% of the variation in y can be explained by the explanatory variable
And then 100-43.56 = 56.44 % of the variation in y that cannot be explained by the explanatory variable
Step-by-step explanation:
For this case we need to calculate the slope with the following formula:
Where:
And we can find the intercept using this:
And the model obtained for this case is:
The correlation coefficient is a "statistical measure that calculates the strength of the relationship between the relative movements of two variables". It's denoted by r and its always between -1 and 1.
And in order to calculate the correlation coefficient we can use this formula:
For this case the value of r = -0.66
Now we can calculate the determination coeffcient:
And then we can conclude that 43.56% of the variation in y can be explained by the explanatory variable
And then 100-43.56 = 56.44 % of the variation in y that cannot be explained by the explanatory variable