Question

The Upper R squared for the regression equation is 0.847 . Interpret the value of Upper R squared . Select the correct choice below and fill in the answer box to complete your choice. ​(Type an integer or a​ decimal.) A. The value of Upper R squared equalsnothing ​% indicates the percentage of the variability in cost of living in 2006 that can be explained by variability in cost of living in 2007. B. The value of Upper R squared equalsnothing ​% indicates the percentage of the variability in cost of living in 2007 that can be explained by variability in cost of living in 2006. C. The value of Upper R squared equalsnothing ​% indicates the percentage of the variability in cost of living in 2006 that cannot be explained by variability in cost of living in 2007. D. The value of Upper R squared equalsnothing​% indicates the percentage of the variability in cost of living in 2007 that cannot be explained by variability in cost of living in 2006.

City	Index_2006	Index_2007
1	117.3	125.7
2	121.8	122
3	102.3	104.3
4	93	95.8
5	111.7	119.6
6	112.9	124.8
7	95.3	97.3
8	109.9	111.5
9	100.5	101.8
10	95.8	103.6
11	121.2	121.4
12	119.3	124.6
13	105.9	118.3
14	111.2	119.4
15	111.3	115.8

Answer 1

By definition, R-squared value refers to the percentage of variability of 'y' that can be explained due to the regression on 'x'. Here, y = Index_2007 and x = Index_2006. Here, the R-squared value is 0.847, which means 84.7% of the variability in Index_2007 can be explained due to the regression on Index_2006. Hence, our answer is - The value of R² = 84.7​% indicates the percentage of the variability in cost of living in 2007 that can be explained by variability in cost of living in 2006.