a-regression-model-for-predicting-monthly-sales-from-number-of-employees-yields-

Question

A regression model for predicting monthly sales from number of employees yields R squared = 0.05. What does this suggest?

Accepted Answer

Number of employees explains very little of the variation in monthly sales; other factors are more important.

Answer

Number of employees is a strong predictor of monthly sales.

Answer

There is a strong linear relationship between employees and sales.

Answer

The regression model fits the data very well.