A coworker of yours is very pleased, having just found an R2 value of 100%, indicating that the regression equation has explained all of the variability in Y (“profits”) based on the X variables “revenues” and “costs.” You then amaze this person by correctly guessing the values of the regression coefficients.
a. Explain why the result (R2 = 100%) is reasonable— trivial, even—in this case.
b. What are the values of the regression coefficients?