Jacob: When using the equation on page 106 and page 107, what is R2? Is R2 the value from the Excel regression add-in using these two explanatory variables?
Rachel:
No, the R2 in the equation on page 106 and page 107 is the correlation of the two explanatory variables, or the R2 from a regression on one on the other. If one have more than two explanatory variables, it is the R2 from a regression of the explanatory variable under consideration on all the other explanatory variables.
Illustration:
In this homework assignment, the R2 from the regression on the response variable on the two explanatory variables is 0.8712. The correlation of the two explanatory variables is 0.6364. Use 0.6364 in the equation, not 0.8712.
In this homework assignment, the R2 from the regression on the response variable on the two explanatory variables is 0.8712. The correlation of the two explanatory variables is 0.6364. Use 0.6364 in the equation, not 0.8712.
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