Question

The managing partner of an advertising agency believes that his company's sales are related to the industry sales. He uses Microsoft Excel's Data Analysis tool to analyze the last 4 years of quarterly data (i.e., n = 16) with the following results: Regression Statistics Multiple R 0.802 R Square 0.643 Adjusted R Square 0.618 Standard Error SYX 0.9224 Observations 16 ANOVA df Regression 1 Error 14 Total 15 SS MS F Sig.F 31.497 21.497 25.27 0.000 21.912 0.851 53.409 Predictor Coef StdError Stat P-value Intercept 3.962 1.440 2.75 0.16 Industry 0.040451 0.008048 5.03 0.000 Durbin-Watson Statistic 1.59 Referring to Table 13-5, the value of the quantity that the least squares regression line explains is

Answer 1

The quantity that least square regression line explains in R squared. It's value is 0.643. This tells that around 64% of the variation in the data is explained by the regression line.