Explanation

R² (coefficient of determination) is calculated as the square of the correlation coefficient (r).

Given:

• Correlation (r) = 0.9757
• R² = r² = (0.9757)² = 0.952

Interpretation of R²:

• R² = 0.952 means that 95.2% of the variability in company sales can be explained by the variability in industry sales
• This makes sense because industry sales is typically the independent variable that explains company sales (the dependent variable)

Why Option C is correct:

• The value 0.952 is correct (0.9757² ≈ 0.952)
• The interpretation correctly states that industry sales explains company sales variability

Why other options are incorrect:

• Options A and B: Use incorrect value (0.048 instead of 0.952)
• Option D: Uses correct value but incorrect interpretation (says company sales explains industry sales)