Following are the data on percentage of investments in energy securities and tax efficiency from Exercise 4.50.

a. Compute SST, SSR, and SSE, using Formula 4.2 on page 167.
b. Compute the coefficient of determination, r 2.
c. Determine the percentage of variation in the observed values of the response variable explained by the regression, and interpret your answer.
d. State how useful the regression equation appears to be for making predictions.

Transcribed Image Text:

x 3. 3.2 3.7 4.3 4.0 5.5 6.7 74 7.4 10.6 y|98. I 94.7 92.0 89.8 87.5 85.0 82.0 77.8 72.1 53.5