Exhibit 14-7

Multiple Choice

Exhibit 14-7.Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s) as the response variable with housing starts (in 1000s) and commercial construction (in 1000s) as the explanatory variables.The results of the regression are: Refer to Exhibit 14-7.The explanatory variables (housing starts and commercial construction) together explained approximately _____% of the variations in the response variable (lumber sales) .

A) 18
B) 22
C) 78
D) 82