researcher studied the relationship between family income and amount of money spent on an
Automobile. She calculated that $R ^ { 2 } = 45 \%$
Which is the correct interpretaion?
A) 45% of the price of the car can be predicted by using income.
B) 45% of the variability in car price can be explained by using income.
C) The car price fluctuates 45% more than income.
D) The probability of predicting the correct price of a car is 45%.
E) None of these

Question

Quizplus · Accepted Answer

45% of the variability in car price can be explained by using income, as $R^2$ represents the proportion of variance in the dependent variable that is predictable from the independent variable.

Researcher Studied the Relationship Between Family Income and Amount of Money