We have data on 2323 randomly selected households consisting of three persons in 2013. Let ENTERT denote the monthly entertainment expenditure (S) per person per month and let INCOME (S100) be monthly household income. From the regression model, we find ENTERT = 9.820 + 0.503 INCOME From the summary statistics, we find SST = > (ENTERT – ENTERT)² = 8691035 SSE = > (ENTERT – ENTERT)² = 7711432 %3D a) Calculate R². How well does the regression model fit the data? How much of the household variation in entertainment expenses have we explained using the regression model? b) Using the answer to (a), calculate SSR. (

We have data on 2323 randomly selected households consisting of three persons in 2013. Let ENTERT denote the monthly entertainment expenditure (S) per person per month and let INCOME (S100) be monthly household income. From the regression model, we find ENTERT = 9.820 + 0.503 INCOME From the summary statistics, we find SST = > (ENTERT – ENTERT)² = 8691035 SSE = > (ENTERT – ENTERT)² = 7711432 %3D a) Calculate R². How well does the regression model fit the data? How much of the household variation in entertainment expenses have we explained using the regression model? b) Using the answer to (a), calculate SSR. (

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 3E

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