The correlation between the age of a car and the amount of m

The correlation between the age of a car and the amount of money the car is worth is -0.7. What percent of the variability in amount of money the car is worth is explained by the age of the car? (No need to use the “%” sign, just give the number as a percent, like 90 instead of 90%)

Solution

The percentage of the variablity explained by the age of the car is the value of r^2.

As

r = -0.7,

r^2 = 0.49.

Thus, 49% of the variation is explained. [ANSWER, 49]