For a large restaurant chain, a financial analyst uses the following model to estimate a franchises net profit y 0 1 x 1 2 x 2 i , where y is net profit, x 1 is counter sales, and x 2 is drive through sales For a sample of 100 franchises, she finds that SSE 4 4600 and SST 18 3784 a Calculate the st...

For a large restaurant chain, a financial analyst uses the following model to estimate a franchises net

Question:

For a large restaurant chain, a financial analyst uses the following model to estimate a franchise’s net profit: y = β₀ + β₁x₁ + β₂x₂ + ɛ_i, where y is net profit, x₁ is counter sales, and x₂ is drive-through sales. For a sample of 100 franchises, she finds that SSE = 4.4600 and SST = 18.3784.

a. Calculate the standard error of the estimate.

b. Calculate and interpret the coefficient of determination.

c. Calculate the adjusted R².

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