Interpret the Value of Correlations Coefficients and Squared Correlations

question 32

Multiple Choice

Interpret the value of correlations coefficients and squared correlations.
-Suppose the correlation, r, between two variables x and y is -0.44. What percentage of
The variability in y cannot be explained by x?

• A) 19%
• B) 44%
• C) 81%
• D) 88%
• E) 12%

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Definitions:

Production Rate

The speed at which goods are manufactured or produced in a given period of time.

Constant Value Dollars

An accounting method that adjusts for inflation to preserve the purchasing power of the currency over time.

Annual Rate Change

The year-over-year percentage change in a particular variable, such as revenue, expenses, or prices.

Unit Cost

The total expense incurred in producing, storing, and selling one unit of a product, calculated by dividing the total cost by the number of units produced.