Financial Risk Manager Part 1
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The correlation between company and industry sales is 0.9757. Which of the following is closest to the value and reports the most likely interpretation of the R²?
The correlation between company and industry sales is 0.9757. Which of the following is closest to the value and reports the most likely interpretation of the R²?
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A
0.048, indicating that the variability of industry sales explains about 4.8% of the variability of company sales.
B
0.048, indicating that the variability of company sales explains about 4.8% of the variability of industry sales.
C
0.952, indicating that the variability of industry sales explains about 95.2% of the variability of company sales.
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