Question: - Compute the coefficient of determination (r2) for Demonstrations problem 14.1,in which a regression model was developed to predict the number of FTEs of a hospital by the number of beds.

Solutions: -
        SSE = 2448.6
        SS_yy = 260,136 – (1692)² = 21,564
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        r² = 1 – SSE = 1 – 2448.6 = .886
__________SS_yy         21,564

This regression model accounts for 88.6% of the variance in FTEs, leaving only 11.4% unexplained variance.
Using SSxx = 3838.667 and b1 = 2.232 from Demonstration Problem 14.1, we can solve for r2 with the computational formula:
        r² = b₁² SSxx = (2.232)² (3838.667) = .886
________SSyy _______21,564