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AP Statistics/Unit 2: Exploring Two-Variable Data
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Coefficient of Determination from SSE and SST

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In a linear regression model for sales (y, in tens of thousands of dollars) based on advertising expenditure (x, in thousands of dollars), the regression equation is y^=2.5+1.8x\hat{y} = 2.5 + 1.8x. Given a sum of squared errors (SSE) of 45 and a total sum of squares (SST) of 180, what percentage of the variation in sales is explained by the linear relationship with advertising expenditure?

A

45%

B

180%

C

75%

D

25%

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