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 variability in car price can be explained by using income.
B) None of these
C) The probability of predicting the correct price of a car is 45%.
D) 45% of the price of the car can be predicted by using income.
E) The car price fluctuates 45% more than income.

Question

Quizplus · Accepted Answer

R², or the coefficient of determination, indicates the proportion of the variance in the dependent variable (car price) that is predictable from the independent variable (income). Thus, 45% of the variability in car price can be explained by using income.

Researcher Studied the Relationship Between Family Income and Amount of Money