Suppose that when education is regressed on income, R squared equals .60. What does that mean?

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When education is regressed on income, the coefficient of determination (denoted by R²) is 0.60. This means that the proportion of total variance in income that can be predicted from education is 60%. In other words, education can account for 60% variability in the income. Out of the total variability in income, education only accounts for 60% of the same.

orchestra answered 2 years ago

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