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R-Squared Difference when Dependent variable is $/lb vs Total Dollars?

  1. Apr 9, 2012 #1
    Why would I see a fairly significant difference in r-square (98.5% vs 85%) when I change my dependent variable from Total $'s to $'s per lb? My independent variable in both cases is weight. Each equation yields essentially the same answer in all tests of weight (within .08%).

    How do I know which one best represents my data? It makes a difference when talking to management if something explains all but 1.5% of the variation in price, vs 15%.
     
  2. jcsd
  3. Apr 9, 2012 #2
    Example of the difference...

    A part that weighs 2 pounds:
    Total dollars equation estimates $72.645
    $/lb equation estimates $36.33/lb (36.33*2 = $72.66)

    This is how it looks for all the different parts.
     
    Last edited: Apr 9, 2012
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