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?

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

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

Not a worked solution repeated four times — the specific reasoning error each wrong option was built to reward, and why this one tests what the inference means.

See pricing

50 are analysed free — try those first.

The trap it tests

What the inference means

p-values, size, power and error types say specific things. This was not one of them.

Drill statements like this

Last revised 12 Sept 2026. Found a mistake? Tell us — corrections are the fastest thing we act on.