Mathematics · Econometrics - Regression Analysis
For a two-variable linear regression model of Y on X, if the coefficient of determination (R2) is 0.76, this implies that:
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- 124% of the variation in the dependent variable Y is not explained by the independent variable X.✓
- 2the correlation coefficient between Y and X is exactly 0.76.
- 3the mean of the dependent variable Y is 0.76.
- 4the mean of the independent variable X is 0.76.
Correct answer
24% of the variation in the dependent variable Y is not explained by the independent variable X.
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