What Does R² Measure

question 21

Multiple Choice

What does r² measure

• A) The proportion of variation in one variable that is explained by the other
• B) The proportion of error variation
• C) The proportion of variation in Y related to the variation of the categories of X
• D) The proportion of variation in Y due to the variation within each of the categories of X
• E) The significance of the relationship between X and Y

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Definitions:

Employment Relationship

The legal and practical connection between an employer and employee, defining rights, responsibilities, and conditions of work.

Repetitive Tasks

Simple or complex activities performed repeatedly by an individual, often associated with manual or clerical jobs, which can lead to monotony and potential health issues.

Mainstream Economics

a body of economic thought and theories that are widely accepted and practiced by economists, focusing on market structures, economic efficiency, and the role of government.

Economic Efficiency

The optimal allocation of resources where output is maximized for a given set of inputs, or the input cost is minimized for a certain level of output.