APFIVE Coefficient of Determination from SSE and SST
A researcher is analyzing the relationship between advertising expenditure (x, in $1000s) and sales (y, in $10000s). The regression equation is $$\hat{y} = 2.5 + 1.8x$$ with SSE = 45 and SST = 180. What percentage of the variation in sales can be explained by the linear relationship with advertising expenditure?
A
180%
B
45%
C
25%
D
75%
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