Question

Question: the correlation coefficient R between the employees age, X, in yearly salary, Y, is 0.923. What percent of the variation in yearly salaries can be explained by the difference in the employee's age?

Answer 1

What we need is the coeeficient of the coefficient of determination of the linear regression R^2

$R^2=\text{ }r^2\times100$

=0.923² x 100%

= 85.1929%

≈ 85.2%

Therefore, 85.2% of the variation of the early salaries is explained by the difference in the emplyee's age.