Question #1
The coefficient of determination (R-squared) shows the proportion of variance in the dependent variable, which is explained by the independent variable. Let’s say, the independent variable is the amount of money invested by a population of investors and the dependent variable is their profits received. Assume, the R-squared between the variables is 0.8567. This means that approximately 85.67% of the variance of profit received is explained by the amount of invested money.
Question #2
This phrase means that if the coefficient of correlation shows a strong relationship between the variables, it not always mean that there is a real causal ...