Question

a random sample of records of sales of homes in a city gives the price and size (in square feet) of 117 homes. a regression to predict price (in thousands of dollars) from size has an r - 2 of 63.6%. write a sentence in context summarizing what the r - 2 says about this regression. choose the correct answer below. a. a linear model on price accounts for 79.7% of the variation in home size. b. a linear model on size accounts for 36.4% of the variation in home price. c. a linear model on size accounts for 63.6% of the variation in home price. d. a linear model on price accounts for 63.6% of the variation in home size. e. a linear model on size accounts for 79.7% of the variation in home price. f. a linear model on price accounts for 36.4% of the variation in home size.

Explanation:

R - squared ($R^{2}$) in a regression model represents the proportion of the variance in the dependent variable that is predictable from the independent variable(s). Here, when predicting Price from Size with an $R^{2}$ of 63.6%, it means the linear model on Size accounts for 63.6% of the variation in home Price.

Answer:

C. A linear model on Size accounts for 63.6% of the variation in home Price.