Question

Larger values of r-square imply that the observations are more closely grouped about the

	a.	average value of the dependent variable
	b.	origin
	c.	least squares line
	d.	average value of the independent variables

Answer 1

Answer : option( c).least squares  line

Explanation

1. R- square is generally used in regression analysis

2. Regression analysis is helpful to measure the relationship among the different variables like demand , price and supply etc

3. R -square is the coefficient of determination for multiple regression.

4. Generally in regression analysis larger values of r-square imply that the observations are more closely grouped about the least squares line

5. R - square values are not always good and high.