Given the equation, Y= 4,000 + 2.5X. The coefficient of determination (R-Squared) is calculated to be 0.70 (or 70%). This equation implies
A) 70% of the variation in Y is explained in X
B) 70% of the variation in X is explained in Y
C) There is no relationship between X and Y, since it not 90% or 95%
D) Since 30% (100% - 70%) is closer to zero there is strong direct relationship between X and Y

Question

Quizplus · Accepted Answer

Coefficient of determination explains the relationship of the independent variable (X) by the dependent variable (Y). The closer the number is to 1 or 100%, the stronger the relationship. 70% change in Y can be explained by change in X.

Given the Equation, Y= 4,000 + 2