If the correlation between a response variable Y and explana
If the correlation between a response variable Y and explanatory variable X is -0.2, what is the value that defines how much varaition in Y is explained by X?
A) 4%
B) 2%
C) -4%
D) -2%
Explain your answer.
Solution
If the correlation between a response variable Y and explanatory variable X is -0.2, what is the value that defines how much variation in Y is explained by X?
A) 4%
B) 2%
C) -4%
D) -2%
Answer A
Explain your answer.
r= -0.2
R2 = (-0.2)*(-0.2) = 0.04 ( that is 0.04*100=4%)
R2 is the variation in Y is explained by X
4% variation in Y is explained by X
