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A researcher studied the relationship between family income and amount of money spent on an ...

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A researcher studied the relationship between family income and amount of money spent on an ...

A researcher studied the relationship between family income and amount of money spent on an automobile. She calculated that R² = 45%. Which is the correct interpretation?

▸ The probability of predicting the correct price of a car is 45%.

▸ 45% of the variability in car price can be explained by using income.

▸ 45% of the price of the car can be predicted by using income.

▸ The car price fluctuates 45% more than income.

▸ None of these

Textbook

Stats: Modeling the World

Edition: 4^th

Authors: Bock, Velleman, De Veaux

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