Question

Asked Oct 13, 2019

That is my question given to me above, I just do not understand how to evaluate the predictive appropriateness from the linear regression equation. Can you please help me?

Step 1

**Solution: **We have to evaluate the predictive appropriateness of the linear model.

Step 2

The predictive appropriateness of the linear model is described by various factors:

Coefficient of Determination

The standard error of the estimate

Significance of the model

Step 3

The coefficient of determination or R-square tells us the amount of variation in the dependent variable that is explained by the independent variable. The coefficient of variation lies between 0 and 1. The closer the value of coefficient of determination to 1, the more appropriate is the model. For example if the coefficient of determination is 0.80, it means 80% of variation in the dependent variable is explained by the independent variable.

The standard error of estimate is the average deviation o...

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