-41.480 O 10.216 -16095 QUESTION 3 4 points Save Answer Ford would like to devel
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-41.480 O 10.216 -16095 QUESTION 3 4 points Save Answer Ford would like to develop a regression model that would predict the number of cars sold per month by a dealership employee based on the employee's number of years of sales experience (X1), the employee's weekly base salary before commissions (X2) and the education level of the employee. There are three levels of education in the sales force-high school degree, associate's degree, and bachelor's degree. The following dummy variables have been definecd X3 X4 High School0 Bachelor's The following table shows the results of a best subsets regression procedure. Best Subsets Analysis intermediate Calculations R2T 1- R2T 0 816294 0 183706 25Explanation / Answer
The fitness of a multiple regression can be understood from the R-Squared value. The R-Squared values tells us how much of the vraiance in repose variable (here the number of cars sold) is able to be explained by the variable present in the model. The R-Square ranges from 0 to 1.
Thus it implies that a a higher R-Square value of a model would mean a better one.
Among the set of variable presented it can be seen that the Best Model in terms of its R-Squared values is that one which has X1,X2,X3,X4 as the descriptor variables. It has the highest R square value of 0.816. Also, it can be seen that the Adjusted R Square Value of this model is also the highest. Thus this model is the best one.
The correct choice is the last one:
number of years of sales experience, the employee's weekly base salary before commisions and X3, X4
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