Answer-first summary for fast verification
Answer: 0.952, indicating that the variability of industry sales explains about 95.2% of the variability of company sales.
## 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)
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
No comments yet.
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?
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.
D
0.952, indicating that the variability of company sales explains about 95.2% of the variability of industry sales.