Here are the essential concepts you must grasp in order to answer the question correctly.
Correlation Coefficient (r)
The correlation coefficient, denoted as r, measures the strength and direction of a linear relationship between two variables. Its value ranges from -1 to 1, where -1 indicates a perfect negative correlation, 1 indicates a perfect positive correlation, and 0 indicates no correlation. In this context, a negative r value suggests that as one variable increases, the other tends to decrease.
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Coefficient of Determination (r^2)
The coefficient of determination, r^2, is the square of the correlation coefficient and represents the proportion of variance in the dependent variable that can be explained by the independent variable in a regression model. It ranges from 0 to 1, where a value closer to 1 indicates that a large proportion of the variance is explained by the model, while a value closer to 0 indicates little explanatory power.
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Coefficient of Determination
Explained vs. Unexplained Variation
Explained variation refers to the portion of the total variation in the dependent variable that is accounted for by the regression model, as indicated by r^2. Conversely, unexplained variation is the portion that remains after accounting for the model, representing factors not captured by the independent variable. Understanding these concepts helps in assessing the effectiveness of the regression model in predicting outcomes.
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