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If SST is 1191.60 and SSE is 135.73. What is the percentage of sample variability in dependent variables due to factors other than independent variables?

Question

If SST is 1191.60 and SSE is 135.73. What is the percentage of sample variability in dependent variables due to factors other than independent variables?

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Solution

To find the percentage of sample variability in dependent variables due to factors other than independent variables, you need to calculate the coefficient of determination (R^2).

First, you need to understand that the Total Sum of Squares (SST) is the total variability in the data, and the Sum of Squares due to Error (SSE) is the variability that is not explained by the independent variables.

The formula to calculate R^2 is:

R^2 = 1 - (SSE/SST)

Substitute the given values into the formula:

R^2 = 1 - (135.73/1191.60)

Calculate the value inside the parenthesis:

= 1 - 0.1139

Subtract to find R^2:

R^2 = 0.8861

To find the percentage of variability not explained by the independent variables, subtract R^2 from 1 and multiply by 100:

Percentage = (1 - R^2) * 100

Substitute the value of R^2:

Percentage = (1 - 0.8861) * 100

Calculate the percentage:

Percentage = 11.39%

So, 11.39% of the sample variability in the dependent variables is due to factors other than the independent variables.

This problem has been solved

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