Using Advertised Prices for Used Ford Escorts a Linear Model $\mathrm { R } ^ { 2 }$

question 17

Multiple Choice

Using advertised prices for used Ford Escorts a linear model for the relationship between a car's age and its price is found.The regression has an $\mathrm { R } ^ { 2 }$ = 87.7%.Write a sentence summarizing what $\mathrm { R } ^ { 2 }$ says about this regression.

• A)The age of the car explains 87.7% of the variation in price.
• B)The price of the car explains 87.7% of the variation in age.
• C)The age of the car explains 12.3% of the variation in price.
• D)The age of the car explains 9.36% of the variation in price.
• E)The price of the car explains 12.3% of the variation in age.

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Z Score

A statistical gauge that measures how a value compares to the average of a set of values by counting the number of standard deviations it falls from the mean.

Standard Score

A score that expresses the number of standard deviations a datum is from the mean of the distribution.

Normal Curve

A symmetrical, bell-shaped curve that describes the distribution of many types of data where most values cluster around the mean.