DA0-002 Data Analysis Practice Question
A data analyst is evaluating a multiple regression model with three predictors. The R² value is 0.85. Which of the following is the best interpretation of R²?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
85% of the variance in the outcome is explained by the predictors.
R² represents the proportion of variance in the dependent variable explained by the independent variables. 0.85 means 85% of the variance is explained.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
85% of the variance in the outcome is explained by the predictors.
Why this is correct
Correct: R² measures explained variance.
- ✗
85% of the predicted values are correct.
Why it's wrong here
R² does not measure prediction accuracy in classification sense.
- ✗
The model has a high bias.
Why it's wrong here
High R² generally indicates good fit, not high bias.
- ✗
The model has a strong correlation of 0.85.
Why it's wrong here
R² is not a correlation coefficient; it is the coefficient of determination.
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