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In a two variable (X and Y) regression analysis, the regression coefficients are bxy = 0.6 and byx = 0.8. If y is dependent variable and x is independent variable, what is the percentage of variations in Y explained by X?
1. 47%
2. 48%
3. 49%
4. 36%

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Correct Answer - Option 2 : 48%

Coefficient of correlation is 'r' value. It will be equal to (bxy*byx)1​/2

= 0.6 x 0.8)1/2

= (0.48)1/2

= 0.6928

R2 is known as the coefficient of determination which explains the percentage variation in the dependent variable explained by the independent variable. 

R2 = r*r = (0.6928)2 = 0.4799 or multiply with 100 to obtain in percentage form, i.e, 47.99% or 48% approximately.

It means 48% variations in Y are explained by X. 

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