Question

the owner of a used car dealership is trying to determine if there is a relationship between the price of a used car and the number of miles it has been driven. the owner collects data for 25 cars of the same model with different mileage and determines each cars price using a used car website. the analysis is given in the computer output.
predictor coef se coef t - ratio p
constant 24157.2 2164.1 2.965 0.046
mileage - 0.181 0.024 5.377 0.000
s = 3860.7 r - sq = 68.0% r - sq(adj) = 69.5%
using the computer output, what is the value of the coefficient of determination?
0.46
0.68
0.70
0.82

Explanation:

Step1: Recall the definition of the coefficient of determination

The coefficient of determination is denoted as \(R - sq\).

Step2: Locate \(R - sq\) in the given output

In the provided computer output, \(R - sq=68.0\%\).

Step3: Convert percentage to decimal

To convert a percentage to a decimal, divide by 100. So, \(68.0\%=\frac{68}{100} = 0.68\)

Answer:

0.68