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DA0-002 Data Analysis Practice Question

A data scientist runs a linear regression model to predict customer spending based on income. The R-squared value is 0.45 and the p-value for the slope coefficient is 0.03. At a significance level of α=0.05, which of the following conclusions is correct?

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

The slope is statistically significant, and the model explains 45% of the variance.

The p-value (0.03) is less than α (0.05), so the slope is statistically significant. R²=0.45 means the model explains 45% of the variance.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • The slope is not statistically significant, and the model explains 55% of the variance.

    Why it's wrong here

    Both parts are incorrect.

  • The slope is statistically significant, and the model explains 45% of the variance.

    Why this is correct

    Correct: p<0.05 indicates significance; R²=0.45 indicates explained variance.

  • The slope is statistically significant, and the model explains 55% of the variance.

    Why it's wrong here

    R² is 0.45, not 0.55.

  • The slope is not statistically significant, and the model explains 45% of the variance.

    Why it's wrong here

    Slope is significant because p < 0.05.

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