Julie Nelson is a senior investment analyst with Daiwa Securities headquartered in Kyoto, Japan. The analyst specializes in the energy industry. Recently she ran a regression explaining the variation in energy consumption as a function of temperature. The total variation of the dependent variable was 140.58, the explained variation was 60.16, and the unexplained variation was 80.52. There were 60 monthly observations.

1.1: Compute the coefficient of determination. Show your calculation.

Hints:

1.2: In plain English, briefly explain the statistical meaning of R²

1.3: What is the sample correlation between energy consumption & temperature? Show your calculations.