Question

A Sociology student investigated the association between a country's Literacy Rate and Life Expectancy, and then drew the conclusions listed below. Explain why each statement is incorrect. (Assume that all the calculations were done properly.)
a) The $$R^2$$ of 64% means that the Literacy Rate determines 64% of the Life Expectancy for a country.
b) The slope of the line shows that an increase of 5% in Literacy Rate will produce a 2-year improvement in Life Expectancy.

Answer 1

Solution :

The term 'literacy rate' provides the ability of a person who is from a definite age group can read or write.

a). $R^2$ does not determine the rate at which the variable explains another, but it explains the amount the amount of variability in one of the variables as explained by the other variable.

b). The slope given provides an expected improvement but it cannot guarantee the improvement. The value may be less or it could be more also.

The regression model provides the prediction and not the actual values.