What does R² = 0.81 mean in regression analysis?

A 81% of the variation in y is explained by x

B The correlation is 0.81

C 81% of data points are accurate

D The slope is 0.81

✓ Correct Answer: Option A

R² (coefficient of determination) = 0.81 means 81% of the variation in the dependent variable is explained by the independent variable(s).

💡 Why is A) the correct answer?

The correct answer to the question "What does R² = 0.81 mean in regression analysis?" is Option A: 81% of the variation in y is explained by x.

The other options — B) The correlation is 0.81, C) 81% of data points are accurate, D) The slope is 0.81 — are incorrect for this GMAT Exam Prep question. As explained above: R² (coefficient of determination) = 0.81 means 81% of the variation in the dependent variable is explained by the independent variable(s).

📚 About This GMAT Exam Prep Practice Question

This 2-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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What does R² = 0.81 mean in regression analysis?

✓ Correct Answer: Option A

📚 About This GMAT Exam Prep Practice Question

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