Better model? Joe wants to impress his boss. He builds a regression model to predict sales that
Question:
Better model? Joe wants to impress his boss. He builds a regression model to predict sales that has 20 predictors and an R2 of 80%. Sally builds a competing model with only 5 predictors, but an R2 of only 78%. Which model is likely to be most useful for understanding the drivers of sales? How could the boss tell? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
The smaller model is likely ...View the full answer
Answered By
Caroline Kinuthia
Taking care of the smaller details in life has a larger impact in our general well being, and that is what i believe in. My name is Carol. Writing is my passion. To me, doing a task is one thing, and delivering results from the task is another thing. I am a perfectionist who always take things seriously and deliver to the best of my knowledge.
4.90+
1933+ Reviews
4269+ Question Solved
Related Book For
Stats Data And Models
ISBN: 9780135163825
5th Edition
Authors: Richard D De Veaux, Paul F Velleman, David E Bock
Question Posted:
Students also viewed these Engineering questions
-
Which protein(s) shown in Figure would be most useful for assessing the phylogenetic relationships between mammalian species)? Explain. Myoglobin Primordial globin
-
Which theory do you think would be most useful for helping managers become more effective? Explain the reason for your choice.
-
Which of the following would be most useful for an internal auditor to obtain during the preliminary survey of an engagement on internal controls over user access management? a. The policy for...
-
In Exercises 13 through 24, compute the derivative of the given function and find the equation of the line that is tangent to its graph for the specified value x = c. f(x) = -2 X ; c = - 1
-
In 2012, the U.S. inflation rate was 2.1% and output was 4.8% below its long-run potential output due to the slow recovery of the economy. Assuming that the inflation target is 2%, what would be the...
-
Select all of the triangles below which are translations of triangle Y.
-
Reconsider the regression models in Problem 12.6, parts a-e. Suppose the error terms in these models were multiplicative, not additive. Rework the problem under this new assumption regarding the...
-
Nina is the auditor for Geiger Construction, a local builder. Geiger recently renovated a historic building in downtown Kingston. The building, which consists of 5 shops, is owned by the Restoring...
-
HBR Reading: What makes a leader? (Emotional intelligence). Goleman. Harvard Business Review. January 2004: 1-11
-
Angela sold her personal auto in 2022 for $8,000. She purchased the car for $26,000 in 2015. She has long-term capital gains of $4,000 from the sale of stock in 2022. What is Angelas net recognized...
-
Mutual fund returns 2017 We have a sample of municipal mutual funds that report their return (%) in the previous 3years and the previous 5 years. 1. Create a 95% confidence interval for the...
-
Significant coefficient? In a regression to predict compensation of employees in a large firm, the predictors in the regression were Years with the Firm, Age, and Years of Experience. The coefficient...
-
1- One staple of consulting is to advise clients to so-called "re-invent" themselves. Suggest the fundamental ways in which innovation matures a company. Provide a rationale and / or a real-world...
-
Below, you are given the expected returns and standard deviations of LOreal and Daimler AG, the Euro Stoxx 50 Index of largest Eurozone firms, and the risk-free asset. 1. Assuming that the returns...
-
Hamilton Corporation has a target equity ratio of 65%, and its capital budget is $2 million. If Hamilton has net income of $1.6 million and follows a residual distribution model, how much will its...
-
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. Businesses that create pollution frequently cause injury to people or damage to their...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. In most cases, the individual voter has direct control over administrative a gencies.
-
A contract with several unrelated parts, each of which can stand alone. a. competent pa rty b. consideration c. divisible c ontract d. entire, or indivisible, contract e. executed c ontract f....
-
Raffinose is a trisaccharide (C18H32O16) isolated from cottonseed meal. Raffinose does not reduce Tollens reagent, and it does not mutarotate. Complete hydrolysis of raffinose gives D-glucose,...
-
Four GWU students have been selected to taste food sold by 3 different food trucks labeled as food truck A, B and C on H & 22nd Streets every Monday for 3-weeks. For each student, food trucks are...
-
Any time we conduct a survey, we must take care to avoid undercoverage. Suppose we plan to select 500 names from the city phone book, call their homes between noon and 4 P.M., and interview whoever...
-
What about drawing a random sample only from cell phone exchanges? Discuss the advantages and disadvantages of such a sampling method compared with surveying randomly generated telephone numbers from...
-
How long is your arm compared with your hand size? Put your right thumb at your left shoulder bone, stretch your hand open wide, and extend your hand down your arm. Put your thumb at the place where...
-
It is known that the proportion of female costumers in Westpac is 40%. The General Manager is interested in some probabilities. Determine What is the probability that in a randomly selected sample in...
-
1. (25 points) Urban renewal has come to the Southeast neighborhood in the city of Bal- ington. The renewal project is a mix of housing, a new public school, and retail facilities. The housing is...
-
two boats A and B travel due north. initially boat B is positioned 50 metres due east of boat A. The distance travelled by boat A and Boat B, after t seconds, are x metres and y metres respectively....
Study smarter with the SolutionInn App