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If the correlation coefficient is 0.654, what is the explained variation? (give answer as a percent)

User Rodrigue
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1 Answer

4 votes

Answer:

42.7%

Explanation:

Correlation is a statistical measure of inter relationship between two variables' co movement.

Correlation coefficient denotes the direction & extent by which two variables' (same or opposite) movement is linked to each other.

Coefficient of determination = r^2 symbolises percentage of variation in one variable, that can be explained by variation in other variable.

So, in this case r^2 = (0.654)^2 = 0.427716 ; Hence approx 42.7% variation in one variable can be explained by variation in other.

User Eduardo Ivanec
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