alleryCoefficient 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_
Keep practising Correlation and Regression
Browse all Correlation and Regression questions for CA Foundation, or explore more Quantitative Aptitude topics.
Related questions
Unlike covariance, the correlation coefficient has what property?Which statement about r is always true?All points satisfy y = 3 - 2x exactly. What is the value of r?Which correlation shows the strongest linear relationship?Judge A ranks 1,2,3,4,5 and judge B ranks the same entrants 2,1,4,3,5. Find rho.Two judges give identical rankings to four contestants. What is the rank correlation?For ten items the sum of squared rank differences is 33. Find the rank correlation.Ranks of five students in two tests give a sum of squared rank differences of 4. Find Spea