Using advertised prices for used Ford Escorts a linear model for the relationship between a car's age and its price is found.The regression has an $\mathrm { R } ^ { 2 }$ = 87.7%.Write a sentence summarizing what $\mathrm { R } ^ { 2 }$ says about this regression.
A)The age of the car explains 87.7% of the variation in price.
B)The price of the car explains 87.7% of the variation in age.
C)The age of the car explains 12.3% of the variation in price.
D)The age of the car explains 9.36% of the variation in price.
E)The price of the car explains 12.3% of the variation in age.

Question

Quizplus · Accepted Answer

The coefficient of determination (R-squared) value of 0.877 indicates that 87.7% of the variation in the price of used Ford Escorts can be explained by their age, thus option A is the correct answer. Option B is incorrect, as it states that the price of the car explains the variation in age, which is not what the regression model is examining. Options C, D, and E are also incorrect, as they suggest that the age or price explains less than 50% of the variation, which is not supported by the given R-squared value.

Using Advertised Prices for Used Ford Escorts a Linear Model R2\mathrm { R } ^ { 2 }R2

Using Advertised Prices for Used Ford Escorts a Linear Model $\mathrm { R } ^ { 2 }$