Question

If the correlation coefficient between two variables is .90, what percent of the variance is explained by this correlation

Answer 1

Answer: 81% of the variance in dependent variable is explained by this correlation .

Explanation:

For X = Independent variable and Y=dependent variable,

If r= correlation coefficient , then we say
`r^2` of the variance in Y is explained by Variable X.

Given: r= 0.90

`(0.90)^2= 0.81`

So, 81% of the variance in dependent variable is explained by this correlation .