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Coefficient of determination r^2 of 0.81 means proportion of variation explained equals

A81%
B100%
C9%
D19%
Answer & Solution
Correct answer: A. 81%
1. Coefficient of determination is r^2. 2. It represents the fraction of variance in y explained by linear relation with x. 3. r^2 = 0.81 means 81% of variation is explained. 4. The remaining 19% is unexplained. _Source: ICAI BoS Foundation Paper 3, Ch 17 'Correlation', p.6_
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