Interpret the R-Squared Value of 95.8

question 6

Multiple Choice

Interpret the R-squared value of 95.8%.

• A)The average correlation between X1,X2,X3,X4,and X5 is 0.975.
• B)95.8% of all samples would result in a useful model.
• C)95.8% of all salaries can be accurately predicted by this model.
• D)The average correlation between X1,X2,X3,X4,and X5 is 0.958.
• E)95.8% of the observed variation in salaries can be explained by this model.

---

Definitions:

Employers

Individuals or entities that hire and pay others for their labor or services in a variety of employment contexts.

Wage Earners

Individuals who receive compensation for their labor or services in the form of wages or salary.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied is completely unresponsive to price changes.

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, and gasoline, often intended to discourage their use or generate revenue.