1. In the regression model of Exercise 3,
a) What is the R2 for this regression? What does it mean?
b) Why is the "Adjusted R Square" in the table different from the "R Square"?
2. Here is another part of the regression output for the movies in Exercise 3:
Source Sum of Squares df Mean Square F-ratio
Regression 224995 3 74998.4 34.8
Residual 249799 116 2153.44
a) Using the values from the table, show how the value of R2 could be computed. Don't try to do the calculation, just show what is computed.
b) What is the F-statistic value for this regression?
c) What null hypothesis can you test with it?
d) Would you reject that null hypothesis?
The next 12 exercises consist of two sets of 6 (one even-numbered, one odd-numbered). Each set guides you through a multiple re- gression analysis. We suggest that you do all 6 exercises in a set. Remember that the answers to the odd-numbered exercises can be found in the back of the book.