Which of the following statements best describes the explanatory power of the estimated regression?
Answer - The independent variables explain 61.58% of the variation in housing starts.
Explanation : The coefficient of determination is the statistic used to identify explanatory power. This can be calculated from the ANOVA table as 3.896/6.327 × 100 = 61.58%.
Now my doubt is R squared is SSR/SST. SSR Stands for Sum of Squared Residuals or Regression? I thought it’s residuals. Thank you.