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      Question

      If the correlation coefficient between two variables

      β€œX” and β€œY” is 0.6, what percentage of the variation in β€œY” is explained by β€œX” in a simple linear regression?
      A 60% Correct Answer Incorrect Answer
      B 36% Correct Answer Incorrect Answer
      C 77% Correct Answer Incorrect Answer
      D 40% Correct Answer Incorrect Answer

      Solution

      The percentage of explained variation is given by the Coefficient of Determination (R2), which is the square of the correlation coefficient (0.6^2 = 0.36 or 36%).

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