If the correlation between sales and profit is .7, what percentage of variance in sales is unshared with variance in profit?
A) 70%
B) 30%
C) 49%
D) 51%

Name: If the correlation between sales and profit is .7, what percentage of variance in sales is unshared with variance in profit? A) 70% B) 30% C) 49% D) 51%
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Question

Quizplus · Accepted Answer

The correlation coefficient squared (0.7^2 = 0.49) represents the shared variance, which is 49%. Therefore, the unshared variance is 100% - 49% = 51%.

If the Correlation Between Sales and Profit Is