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9. In a regression setting where y is a response and x is an explanatory variabl

ID: 3070986 • Letter: 9

Question

9. In a regression setting where y is a response and x is an explanatory variable, the square of the correlation, or regression of y on x. regression of y on x. (r squared), is a) the fraction of the variation in the values of y that is explained by the least-squares b) the fraction of the variation in the values of x that is explained by the least-squares c) the fraction of the variation in the values of y-intercept that is explained by the least- d) the fraction of the correlation in the values of y and x. squares regression of y on x.

Explanation / Answer

9. In a regression setting where y is a response and x is an explanatory variable, the square of the correlation, or r2 (r squared), is

Answer: a) the fraction of the variation in the values of y that is explained by the least-squares regression of y on x.

R2 is the proportion of variance in the dependent variable which can be explained by the independent variables.This is an overall measure of the strength of association and does not reflect the extent to which any particular independent variable is associated with the dependent variable.

Therefore, option a makes the correct interpretation of square of the correlation or r2.