If the coefficient of correlation is 0.8, the percentage of variation in the dependent variable explained by the estimated regression equation is
A)0.80%
B)80%
C)0.64%
D)64%

Question

Quizplus · Accepted Answer

The coefficient of determination, denoted by R^2, is the square of the coefficient of correlation (r). Therefore, R^2 = 0.8^2 = 0.64 or 64%. This represents the proportion of the variation in the dependent variable (y) that is explained by the independent variable(s) (x) in the estimated regression equation. Option D is the only choice which correctly represents this proportion.

If the Coefficient of Correlation Is 0