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Part ACSIR NET December 2024r-squared-not-r-is-the-variation-explained

R squared not r is the variation explained

The given figure shows data points and a line fit by least squares method between profit in ice-cream business and mean temperature (T) for a city. Printed on the figure are the fitted line Profit = 4T − 86 and the correlation coefficient r = 0.83. Which one of the following inferences can definitely be drawn?

  1. A.The sum of the squared values of differences between the observed and expected values of temperature is the minimum.
  2. B.83% of the variation in profit is explained by the variation in temperature.
  3. C.Rise in temperature causes profit to increase.
  4. D.At 25°C, estimated profit is 14 million ₹.✓

You have the answer. Trap Analysis is why the other three were written.

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