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If, in a multiple regression of the price of a diamond against the two predictor variables, weight and color, the R2 of the regression was 0.985, then which of the following is the best interpretation of this value?
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Two software manufacturers are planning on each bringing a new software to the market, which are going to be incompatible with one another. If firms A and B each adopt their own software, they will get payoffs of 200. If firm A and B adopt firm A’s Software, A will get 400 and B zero profits and vice versa. If both were to adopt the other one’s software, they would each get zero profits.
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