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 represents the proportion of variance in the dependent variable that is explained by the independent variable
• In this context, if we consider industry sales as the independent variable and company sales as the dependent variable, then R² = 0.952 means that 95.2% of the variability in company sales is explained by the variability in industry sales

Why option C is correct:

• The value 0.952 is the correct R² calculation (0.9757² ≈ 0.952)
• The interpretation correctly states that industry sales (independent variable) explains company sales (dependent variable)
• This makes economic sense as industry trends typically drive individual company performance

Why other options are incorrect:

• Options A and B: Use incorrect value (0.048 instead of 0.952)
• Option D: Has the correct value but incorrect interpretation - it reverses the relationship between independent and dependent variables