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标题: Reading 11- LOS F (Part 2): Q2 [打印本页]

作者: cfaedu    时间: 2008-4-1 13:39     标题: [2008] Session 3 - Reading 11- LOS F (Part 2): Q2

2.at 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 = r × 2

B)                                                                percent of variability of the dependent variable that is explained by the variability of the independent variable                              R2 = r × 2

C)                                                                percent of variability of the independent variable that is explained by the variability of the dependent variable                                R2 = r2

D)                                                                percent of variability of the dependent variable that is explained by the variability of the independent variable                              R2 = r2


作者: cfaedu    时间: 2008-4-1 13:39

The correct answer was D)

R2, or the Coefficient of Determination, is the square of the coefficient of correlation (r). The coefficient of correlation describes the strength of the relationship between the X and Y variables. The standard error of the residuals is the standard deviation of the dispersion about the regression line. The t-statistic measures the statistical significance of the coefficients of the regression equation. In the response: "percent of variability of the independent variable that is explained by the variability of the dependent variable," the definitions of the variables are reversed.






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