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The two variables price of a house (Y) and size of a house in square feet (X) have a correlation coefficient of .8. What percent of the variation of price can be explained by the variation in size

User Havnar
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1 Answer

1 vote

Answer:

64%

Explanation:

The coefficient of correlation measures the degree of association between two variables :the dependent and independent variables. It is denoted r, and a positive r such as 0.8 here means there's is a strong relationship between variables likewise a negative -r which only means one variable increases as the other decreases(opposite of r positive coefficient).

When the r coefficient of correlation is squared, we get a coefficient of determination which is used to measure the percentage of change regarding how the independent variable affects the dependent. This is illustrated in our answer where we square our coefficient of correlation to get the coefficient of determination 64% meaning that x which is size of the house will affect 64% of y which is the price of the house

User Pnovotnak
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