In regression,what does it mean when the R² = 1?
A)All of the variation in market pay can be explained by the company's job structure.
B)None of the variation in market pay can be explained by the company's job structure.
C)All of the variation in market pay can be explained by the company's external pay rates.
D)All of the variation in market pay can be explained by the benchmark rates.

Question

Quizplus · Accepted Answer

When R² = 1, it means that all of the variation in the dependent variable (in this case, market pay) can be explained by the independent variable (in this case, the company's job structure). Therefore, choice A is the correct answer. Choices B, C, and D are incorrect because they suggest that none or a different set of variables can explain the variation in market pay.

In Regression,what Does It Mean When the R² = 1