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(c) (2 points) Remember the conclusion of 1(d), that r8773 : 0. Use this, along with part (b) of this question, to show that the
(c) (2 points) Remember the conclusion of 1(d), that r8773 : 0. Use this, along with part (b) of this question, to show that the variance of the response y can be decomposed as a sum of the variance of the tted values 3) and the variance of the residuals e: 2_ 2 2 0y0+ae, Hint: remember that y = 3) + e. (d) (2 points) Use the last part to show that 1 R2 = 03/05. Note on motivation: In other words, the residuals i.e., the part of the response that is unexplained by the predictors are less variable than the response, and the factor by which they shrink is exactly 1 R2. So if, for example, R2 : 0.7, the residuals from the regression are 70% smaller than the residuals for the constant model. This motivates the idea that the regression has therefore \"explained away\" 70% of the variance in the response
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