Question

The annual salary and the number of years of teaching experience were recorded for 100 high school teachers in northern Ohio. When the data points were plotted using a scatterplot, the relationship was shown to be linear and positive, with a correlation of r = 0.75 between salary and number of years of teaching experience. If we construct a regression equation to predict salary based on years of teaching experience, approximately what percentage of the variability in salary would be explained by that regression equation?  

A 38%

B 56%

C 87%

D 75%

E 41%

Answer 1

Here,

We have:

Correlation coefficient (r) = 0.75

Coefficient of determination tells us the variability in the dependent variable explained by the independent variable.

Coefficient of determination = r² = 0.75² = 0.5625 = 56%

Therefore, the percentage of variability in salary would be explained by that regression equation is 56%.

B option is correct.