If R² is less than 1

Question

Quizplus · Accepted Answer

R² is a measure of the proportion of the variance in the dependent variable explained by the independent variable. If R² is less than 1, it simply means that not all of the variation in the dependent variable is explained by the independent variable, and there may be some observations that do not fit on the regression line. This does not necessarily mean that the regression analysis is incorrect or that the observation data is suspect. Therefore, the best choice is C.

If R² Is Less Than 1