CFA Practice Question
What does a coefficient of correlation of 0.70 mean?
A. 70% of the variation in one variable is explained by the other
B. Coefficient of determination is 0.49
C. None of these answers
Explanation: The coefficient of correlation, r, is just the square root of the coefficient of determination r-squared.
User Contributed Comments 2
| User | Comment |
|---|---|
| Ling | B is only true when it is a regression with one independent variable. |
| msabanka | A can also be true in this sense as it is not mentioned that it is a regression interpretation |