In a regression and correlation analysis if R² = 1, then
A) SSE = SST
B) SSE = 1
C) SSR = SSE
D) SSR = SST

Question

Quizplus · Accepted Answer

R² = 1 indicates that all the variation in the dependent variable is explained by the regression model. This means that the sum of square of residuals (SSE) is zero, as there is no error in explaining the variation in the dependent variable. Therefore, SSR (sum of square of regression) is equal to SST (total sum of squares). Hence, the correct answer is D, i.e. SSR = SST.

In a Regression and Correlation Analysis If R² = 1