Question 1: The ANOVA summary table below is the result of a regression of sales on year of sales. Is the relationship statistically significant at .05? Comment.
Source of Variation
|
Sum of Squares
|
d.f.
|
Mean Square
|
F-Value
|
Explained by regression
|
605,370,750
|
1
|
605,370,750
|
3.12
|
Unexplained by regression
|
1,551,381,712
|
8
|
193,922,714
|
|
Total error
|
|
9
|
|
|
Question 2: A metropolitan economist is attempting to predict the average total budget of retired couples in Phoenix, based on the average U.S. urban retired couples' total budget. An r2 of 0.7824 is obtained. Will the regression be a good predictive model?