How is the R2 value calculated, and what information does this give you?
What will be an ideal response?
R2 = RSS/TSS = 1 - (ESS/TSS), where TSS = sum of squared deviations of the sample values of Y from their mean, RSS = sum of squared deviations of the estimated values from their mean, and ESS = sum of the squared deviations of the sample values from their estimated values. The R2 value tells you what percentage of the variation in the dependent variable is explained by variation in the independent variables, or the "goodness of fit" of the equation. In this case, 65% of the variation in quantity demanded is explained by variation in the independent variables.
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If Congress passed new laws significantly increasing the regulation of business, this action would tend to:
A. Increase per-unit production costs and shift the aggregate supply curve to the left B. Increase per-unit production costs and shift the aggregate supply curve to the right C. Increase per-unit production costs and shift the aggregate demand curve to the left D. Decrease per-unit production costs and shift the aggregate supply curve to the left
When the employees at Invigorate Corporation receive an across-the-board raise of 5 percent, the demand for dining at mid-priced restaurants increases 7 percent. The restaurants are an example of a(n) ______ good.
a. superior b. inferior c. stable d. normal