(solution) The Financial Review wished to estimate the amount of annual

(solution) The Financial Review wished to estimate the amount of annual

The Financial Review wished to estimate the amount of annual government spending using tax revenue and level of nationwide debt. Data from 1958-2008 (inclusive) was used. All variables were measured in billions of dollars. It was found that the mean square error for the regression was 17 and the total sum of squares was 3000. Hence, what percentage of the variation in annual government spending is explained by the regression equation? Give your answer correct to two decimal places.