The coefficient of determination is important in explaining variances in estimating equations. For a certain estimating equation, the unexplained variation was given as 22,000. The total variation was given as 55,000. What is the coefficient of determination for the equation?
A) 2.50
B) 0.40
C) 0.60
D) 1.40

Question

Quizplus · Accepted Answer

The coefficient of determination is calculated as the ratio of explained variation to total variation. Therefore, the explained variation can be calculated as follows: Total variation - Unexplained variation = 55,000 - 22,000 = 33,000. Thus, the coefficient of determination is 33,000/55,000 = 0.6. Therefore, the best choice is C.

The Coefficient of Determination Is Important in Explaining Variances in Estimating