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Reading 11: Correlation and Regression - LOS f, (Part 2):

Q21. What does the R2 of a simple regression of two variables measure and what calculation is used to equate the correlation coefficient to the coefficient of determination?

         R2 measures:                                        Correlation coefficient

A) percent of variability of the independent variable that

is explained by the variability of the dependent variable         R2 = r2

B) percent of variability of the independent variable that

is explained by the variability of the dependent variable         R2 = r × 2

C) percent of variability of the dependent variable that

is explained by the variability of the independent variable        R2 = r2

Q22. The R2 of a simple regression of two factors, A and B, measures the:

A)   impact on B of a one-unit change in A.

B)   percent of variability of one factor explained by the variability of the second factor.

C)   statistical significance of the coefficient in the regression equation.

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