📊 GMAT Exam Prep

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).

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