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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Forecasting
Using data from twelve European countries, it has been calculated that the correlation between the level
of car ownership and the number of road deaths is 0.73.
Which TWO of the statements shown follow from this?
A)High levels of car ownership cause high levels of road deaths
B)There is a strong relationship between the level of car ownership and the number of road deaths
C)53% of the variation in the level of road deaths from one country to the next can be explained by
D)the corresponding variation in the level of car ownership
73% of the variation in the level of road deaths from one country to the next can be explained by
the corresponding variation in the level of car ownership
Hello,the answer is given B and C
but why?
B and D should be
As I explain in my free lectures, it is the coefficient of determination that measure what % of the level of road deaths is explained by the level of car ownership (not the coefficient of correlation).
The coefficient of determination is 0.73^2 = 0.53 (or 53%).
