Correlation (r) is a measure of linear association between two variables. Coefficient of determination (r^2), is a measure of how much of the variability in one variable can be "explained by" variation in the other.
For example, if r 0.8 is the correlation between two variables, then, r^2 = 0.64. Hence, 64% of the variability in one can be explained by differences in the other. Right?
My question is, for the example stated, is any one of the following statements correct?
- 64% of values fall along the regression line
- 80% of values fall along the regression line
I am quite confused. I would highly appreciate any help. Thanks!