Output is shown for a regression of sales on ad spend.
Which is the best interpretation of r-squared?
- A
About 72% of advertisements lead to sales
- B
Sales increase by 72% per ad dollar
- C
The model predicts sales correctly 72% of the time
- Dcheck_circle
About 72% of the variation in sales is explained by the linear regression on ad spend
Explanation
r-squared is the proportion of variability in the response (sales) accounted for by the linear model with the predictor (ad spend).