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May 25'23
Exercise
For a simple linear regression model the sum of squares of the residuals is
[[math]]
\sum_{i=1}^{25}e_i^2 = 230
[[/math]]
and the [math]R^2[/math] statistic is 0.64.
Calculate the total sum of squares (TSS) for this model.
- 605.94
- 638.89
- 690.77
- 701.59
- 750.87
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.
May 26'23
Key: B
TSS= (Residual Sum of Squares) / (1 − R2) = 230 / (1 − 0.64) = 638.89
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.